Accounting Question 9-2Question Details EXERCISE9-2 Prepare a Report ShowingActivityVariances Flight Cafe is a company that prepares in-flight meals for airlines in its kitchen located next to the local airport. The company's planning budget for July appears below: Flight Cafe Planning Budget For the Month Ended July 31 Budgeted meals (q) . 18,000 Revenue ($4.50q) . 81,000 Expenses: Raw materials ($2.40q) . 43,200 Wages and salaries ($5,200 + $0.30q) .10,600 Utilities ($2,400 + $0.05q) .3,300 Facility rent ($4,300) : . 4,300 Insurance ($2,300) . 2,300 Miscellaneous ($680 + $0.1Oq) . 2,480 Total expense . 66,180 Net operating income . 14,820 In July, 17,800 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Cafe Flexible Budget For the Month Ended July 31 Budgeted meals (q) . 17,800 Revenue ($4.50q) . 80,100 Expenses: Raw materials ($2.40q) . 42,720 Wages and salaries ($5,200 + $0.30q) . 10,540 Utilities ($2,400 + $0.05q) . 3,290 Facility rent ($4,300) . 4,300 Insurance ($2,300) . 2,300 Miscellaneous ($680 + $0.1Oq) . 2,460 Total expense . 65,610 Net operating income . 14,490 Required: 1. Prepare a report showing the company's activity variances for July. 2. Which of the activity variances should be of concern to management? Explain. Please answer question in this format, thanks Flight Cafe Activity Variances For the Month Ended July 31 Planning Flexible Activity Variance Budget Budget Meals.......................................... 18,000 17,800 Revenue ($???q) . Expenses: Raw materials ($???q) . Wages and salaries ($??? +$O.??q) . Utilities ($??? + $O.??q) . Facility rent ($???) . Insurance ($???) . Miscellaneous ($??? + $O.??q) . Total expense . Net operating income . Be sure each is label as U or F 2. Please fully explain your