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) 28,000 Revenue ($4.00q) $ 112,000 Expenses: Raw materials ($1.90q) 53,200 Wages and salaries ($6,400 + $0.20q) 12,000 Utilities ($1,900 + $0.05q) 3,300 Facility rent ($3,200) 3,200 Insurance ($2,100) 2,100 Miscellaneous ($400 + $0.10q) 3,200 Total expense 77,000 Net operating income $ 35,000 In July, 29,000 actually meals were 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) 29,000 Revenue ($4.00q) $ 116,000 Expenses: Raw materials ($1.90q) 55,100 Wages and salaries ($6,400+ $0.20q) 12,200 Utilities ($1,900 + $0.05q) 3,350 Facility rent ($3,200) 3,200 Insurance ($2,100) 2,100 Miscellaneous ($400 + $0.10q) 3,300 Total expense 79,250 Net operating income $ 36,750 Required: 1. Calculate the companys activity variances for July.