Exercise 9-2 (Algo) Activity Variances [LO9-2] 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) 26,000 Revenue ($3.90q) $ 101,400 Expenses: Raw materials ($2.00q) 52,000 Wages and salaries ($6,200 + $0.20q) 11,400 Utilities ($1,900 + $0.05q) 3,200 Facility rent ($3,600) 3,600 Insurance ($2,600) 2,600 Miscellaneous ($900 + $0.10q) 3,500 Total expense 76,300 Net operating income $ 25,100 In July, 27,000 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) 27,000 Revenue ($3.90q) $ 105,300 Expenses: Raw materials ($2.00q) 54,000 Wages and salaries ($6,200+ $0.20q) 11,600 Utilities ($1,900 + $0.05q) 3,250 Facility rent ($3,600) 3,600 Insurance ($2,600) 2,600 Miscellaneous ($900 + $0.10q) 3,600 Total expense 78,650 Net operating income $ 26,650 Required: 1. Calculate the companys activity variances for July..