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 Cost of ingredients Rent Utilities Salaries Miscellaneous $14.15q S4.60q $2,050 S300 S0.15q S6,000 $500 $.65q Actual results for February appear below. Prepare a flexible budget performance report for the pizzeria for February for 1,300 pizzas. Revenuc Cost of ingredients Rent Utilities Salaries Miscellaneous $18,500 6,100 2,050 608 6,200 1,050 Required: a. b. c. Prepare a budget for 1,400 pizzas (this is the planning budget). Prepare a budget for 1,300 pizzas (this is the flexible budget) 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