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 + $0.10q) 2,480 Total expense . . . . .. 66,180 Net operating income .. $14,820In 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 + $0.10q) 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