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) 22,000 Revenue ($4.00q) $ 88,000 Expenses: Raw materials ($1.90q) 41,800 Wages and salaries ($6,000 + $0.20q) 10,400 Utilities ($2,200 + $0.05q) 3,300 Facility rent ($4,000) 4,000 Insurance ($2,800) 2,800 Miscellaneous ($600 + $0.10q) 2,800 Total expense 65,100 Net operating income $ 22,900 In July, 23,000 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) 23,000 Revenue ($4.00q) $ 92,000 Expenses: Raw materials ($1.90q) 43,700 Wages and salaries ($6,000+ $0.20q) 10,600 Utilities ($2,200 + $0.05q) 3,350 Facility rent ($4,000) 4,000 Insurance ($2,800) 2,800 Miscellaneous ($600 + $0.10q) 2,900 Total expense 67,350 Net operating income $ 24,650 Required: 1. Calculate the companys activity variances for July.