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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

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 Caf
Planning Budget
For the Month Ended July 31
Budgeted meals (q) 21,000
Revenue ($3.90q) $ 81,900
Expenses:
Raw materials ($2.30q) 48,300
Wages and salaries ($6,200 + $0.20q) 10,400
Utilities ($1,900 + $0.05q) 2,950
Facility rent ($3,500) 3,500
Insurance ($2,700) 2,700
Miscellaneous ($500 + $0.10q) 2,600
Total expense 70,450
Net operating income $ 11,450

In July, 22,000 meals were actually served. The companys flexible budget for this level of activity appears below:

Flight Caf
Flexible Budget
For the Month Ended July 31
Budgeted meals (q) 22,000
Revenue ($3.90q) $ 85,800
Expenses:
Raw materials ($2.30q) 50,600
Wages and salaries ($6,200+ $0.20q) 10,600
Utilities ($1,900 + $0.05q) 3,000
Facility rent ($3,500) 3,500
Insurance ($2,700) 2,700
Miscellaneous ($500 + $0.10q) 2,700
Total expense 73,100
Net operating income $ 12,700

. REQUIRED

Calculate the companys activity variances for July.

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