BROSE ZA VLOG Right Care prepares in-flight meals for mirties in its kitchen located next to a local airport. The company's planning budget for July appens below: Fhght Cafe Planning Budget For the Month Ended July 31 Budgeted meals 18.000 Revenue ($4.50 $81.000 Expenses Raw materials ($2.400 43,200 Wages and salaries ($5,200 + $0.300) 10.600 Utilities ($2,400+ $0.050 3.300 Facility rent ($4,300) 4,300 Insurance ($2.300) 2.300 Miscellaneous ($680 + $0.10 -2.480 Total expense 66,180 Net operating income $14,820 BENIM In July, 17.800 meals were actually served. The company's flexible budget for this level of activity appears below: 17.800 580.100 Flight Cafe Flexible Budget For the Month Ended July 31 Budgeted meal al Revenue $4.500 Expenses Raw materials ($2.400) Wages and salaries (55.200 + $0.300) Vuities ($2.400 + $0.050 Facility rent (54,300) Insurance ($2.300) Miscelaneous (5680 + $0.100) Total expense Net operating income 42.720 10.540 3.290 4.300 2.300 2.460 65.610 $14.490 Required: 1. Calculate the company's activity vatiances for July. Hint: Refer to Exhibit 9-6.) Which of the activity variances should be of concern to management? Explain