Flight Caf prepares in-flight meals for airlines in its kitchen located next to a local...

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Accounting

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) 23,000
Revenue ($3.90q) $ 89,700
Expenses:
Raw materials ($2.30q) 52,900
Wages and salaries ($6,500 + $0.20q) 11,100
Utilities ($1,900 + $0.05q) 3,050
Facility rent ($3,800) 3,800
Insurance ($2,200) 2,200
Miscellaneous ($500 + $0.10q) 2,800
Total expense 75,850
Net operating income $ 13,850

In July, 24,000 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) 24,000
Revenue ($3.90q) $ 93,600
Expenses:
Raw materials ($2.30q) 55,200
Wages and salaries ($6,500+ $0.20q) 11,300
Utilities ($1,900 + $0.05q) 3,100
Facility rent ($3,800) 3,800
Insurance ($2,200) 2,200
Miscellaneous ($500 + $0.10q) 2,900
Total expense 78,500
Net operating income $ 15,100

Required:

1. Calculate the companys activity variances for July

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