Question: Please dnt use CHATGPT.Please type the answer with good and detailed explanation.Thank You Flight Caf prepares in-flight meals for airlines in its kitchen located next

Please dnt use CHATGPT.Please type the answer with good and detailed explanation.Thank You

Flight Caf prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July appears below:

Flight Caf
Planning Budget
For the Month Ended July 31
Budgeted meals (q) 21,000
Revenue ($4.40q) $ 92,400
Expenses:
Raw materials ($2.00q) 42,000
Wages and salaries ($6,200 + $0.20q) 10,400
Utilities ($2,200 + $0.05q) 3,250
Facility rent ($3,100) 3,100
Insurance ($2,400) 2,400
Miscellaneous ($800 + $0.10q) 2,900
Total expense 64,050
Net operating income $ 28,350

In July, 22,000 meals were actually served. The company's flexible budget for this level of activity appears below:

Flight Caf
Flexible Budget
For the Month Ended July 31
Budgeted meals (q) 22,000
Revenue ($4.40q) $ 96,800
Expenses:
Raw materials ($2.00q) 44,000
Wages and salaries ($6,200+ $0.20q) 10,600
Utilities ($2,200 + $0.05q) 3,300
Facility rent ($3,100) 3,100
Insurance ($2,400) 2,400
Miscellaneous ($800 + $0.10q) 3,000
Total expense 66,400
Net operating income $ 30,400

Required:

1. Calculate the company's activity variances for July.

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