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: 18,000 $81,000 Flight Caf Planning Budget For the Month Ended July 31 Budgeted meals (9) Revenue ($4.504) Expenses: Raw materials ($2.400) Wages and salaries ($5,200 + $0.300) Utilities ($2,400 + $0.050 Facility rent ($4,300) Insurance ($2,300) Miscellaneous ($680 + $0.100) Total expense Net operating income 43,200 10,600 3,300 4,300 2,300 2.480 66.180 $14,820 In July, 17.800 meals were actually served. The company's flexible budget for this level of activity appears below: 17,800 $80,100 Flight Caf Flexible Budget For the Month Ended July 31 Budgeted meals (a Revenue ($4.500) Expenses: Raw materials ($2.400 Wages and salaries ($5,200 + $0.300 Utilities ($2.400 + $0.054) Facility rent ($4.300) Insurance ($2,300) Miscellaneous ($680 + $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 variances for July. (Hint: Refer to Exhibit 9-69.) 2. Which of the activity variances should be of concern to management? Explain