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) 25,000 Revenue ($3.90q) $ 97,500 Expenses: Raw materials ($2.10q) 52,500 Wages and salaries ($6,300 + $0.20q) 11,300 Utilities ($1,800 + $0.05q) 3,050 Facility rent ($3,800) 3,800 Insurance ($2,800) 2,800 Miscellaneous ($600 + $0.10q) 3,100 Total expense 76,550 Net operating income $ 20,950

In July, 26,000 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) 26,000 Revenue ($3.90q) $ 101,400 Expenses: Raw materials ($2.10q) 54,600 Wages and salaries ($6,300+ $0.20q) 11,500 Utilities ($1,800 + $0.05q) 3,100 Facility rent ($3,800) 3,800 Insurance ($2,800) 2,800 Miscellaneous ($600 + $0.10q) 3,200 Total expense 79,000 Net operating income $ 22,400

Flight Caf Activity Variances For the Month Ended July 31 Revenue Expenses: Raw materials F Wages and salaries Utilities Facility rent None U Insurance Miscellaneous Total expense Net operating income