Air Meals is a company that prepares in-flight meals for airlines in its kitchen

Air Meals 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 December appears below:

In December, 21,000 meals were actually served.  The company's flexible budget for this level of activity follows:

Required:

Prepare a report showing the company’s activity variances for December.

Which of the activity variances should be of concern to management? Explain