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 ($4.20q) $ 117,600 Expenses: Raw materials ($2.10q) 58,800 Wages and salaries ($6,300 + $0.20q) 11,900 Utilities ($1,900 + $0.05q) 3,300 Facility rent ($3,700) 3,700 Insurance ($2,900) 2,900 Miscellaneous ($600 + $0.10q) 3,400 Total expense 84,000 Net operating income $ 33,600 In July, 29,000 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) 29,000 Revenue ($4.20q) $ 121,800 Expenses: Raw materials ($2.10q) 60,900 Wages and salaries ($6,300+ $0.20q) 12,100 Utilities ($1,900 + $0.05q) 3,350 Facility rent ($3,700) 3,700 Insurance ($2,900) 2,900 Miscellaneous ($600 + $0.10q) 3,500 Total expense 86,450 Net operating income $ 35,350

Required: 1. Calculate the companys activity variances for July.