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) 27,000 Revenue ($4.50q) $ 121,500 Expenses: Raw materials ($2.10q) 56,700 Wages and salaries ($6,300 + $0.20q) 11,700 Utilities ($2,100 + $0.05q) 3,450 Facility rent ($4,000) 4,000 Insurance ($2,100) 2,100 Miscellaneous ($300 + $0.10q) 3,000 Total expense 80,950 Net operating income $ 40,550

In July, 28,000 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) 28,000 Revenue ($4.50q) $ 126,000 Expenses: Raw materials ($2.10q) 58,800 Wages and salaries ($6,300+ $0.20q) 11,900 Utilities ($2,100 + $0.05q) 3,500 Facility rent ($4,000) 4,000 Insurance ($2,100) 2,100 Miscellaneous ($300 + $0.10q) 3,100 Total expense 83,400 Net operating income $ 42,600

Required: 1. Calculate the companys activity variances for July