Flight café prepares in-flight meals for airlines and its planning budget for july appears below: flight café 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 $0.3q) 10,600 utilities ($2,400 $0.05q) 3,300 facility rent ($4,300) 4,300 insurance ($2,300) 2,300 micellaneous ($680 $0.1q) 2,480 total expenses 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 café 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 $0.3q) 10,540 utilities ($2,400 $0.05q) 3,290 facility rent ($4,300) 4,300 insurance ($2,300) 2,300 micellaneous ($680 $0.1q) 2,460 total expenses 65,610 net operating income $14,490 required: 1. Calculate the company’s activity variances for july. 2. which of the activity variances should be of concern to management? explain.