1. (8 points) Pie Guys Pizzeria is owned and operated by three brothers. Data concerning the pizzeria's monthly revenues and costs appear below (q refers to the number of pizzas served): Formula Revenue $14.159 Cost of ingredients $4.609 Rent $2,050 Utilities $300 + $0.154 Salaries $6,000 Miscellaneous $500 + $.65q Actual results for February appear below. Prepare a flexible budget performance report for the pizzeria for February for 1,300 pizzas. Revenue $18,500 Cost of ingredients 6,100 Rent 2,050 Utilities 608 Salaries 6,200 Miscellaneous 1,050 Required: a. Prepare a budget for 1,400 pizzas (this is the planning budget). b. Prepare a budget for 1,300 pizzas (this is the flexible budget). c. Compute the activity variances between the two budgets and revenue/spending variances between the actual data and the flexible budget. Also indicate whether the variance is favorable or unfavorable