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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)	24,000
Revenue ($4.40q)	$ 105,600
Expenses:
Raw materials ($2.20q)	52,800
Wages and salaries ($6,100 + $0.20q)	10,900
Utilities ($2,000 + $0.05q)	3,200
Facility rent ($3,100)	3,100
Insurance ($2,400)	2,400
Miscellaneous ($700 + $0.10q)	3,100
Total expense	75,500
Net operating income	$ 30,100

In July, 25,000 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)	25,000
Revenue ($4.40q)	$ 110,000
Expenses:
Raw materials ($2.20q)	55,000
Wages and salaries ($6,100+ $0.20q)	11,100
Utilities ($2,000 + $0.05q)	3,250
Facility rent ($3,100)	3,100
Insurance ($2,400)	2,400
Miscellaneous ($700 + $0.10q)	3,200
Total expense	78,050
Net operating income	$ 31,950

\begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ Activity Variances } \\ \hline \multicolumn{2}{|c|}{ For the Month Ended July 31 } \\ \hline Revenue & & \\ \hline Expenses: & & \\ \hline Raw materials & & \\ \hline Wages and salaries & & \\ \hline Utilities & & \\ \hline Facility rent & \\ \hline Insurance & \\ \hline Miscellaneous & \\ \hline Total expense & \\ \hline Net operating income & \\ \hline \end{tabular}

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