Flight Caf prepares in-flight meals for airlines in its kitchen located next to a local airport. The companys planning budget for July appears below:

Flight CafPlanning BudgetFor the Month Ended July 31Budgeted meals (q)25,000Revenue ($4.00q)$ 100,000Expenses: Raw materials ($2.00q)50,000Wages and salaries ($6,000 + $0.20q)11,000Utilities ($1,900 + $0.05q)3,150Facility rent ($3,100)3,100Insurance ($2,200)2,200Miscellaneous ($800 + $0.10q)3,300Total expense72,750Net operating income$ 27,250

In July, 26,000 meals were actually served. The companys flexible budget for this level of activity appears below:

Flight CafFlexible BudgetFor the Month Ended July 31Budgeted meals (q)26,000Revenue ($4.00q)$ 104,000Expenses: Raw materials ($2.00q)52,000Wages and salaries ($6,000+ $0.20q)11,200Utilities ($1,900 + $0.05q)3,200Facility rent ($3,100)3,100Insurance ($2,200)2,200Miscellaneous ($800 + $0.10q)3,400Total expense75,100Net operating income$ 28,900

Required:

1. Calculate the companys activity variances for July.