1: Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria's owner has determined that the shop has two major cost drivers the number of pizzas sold and the number of deliveries made. Data concerning the pizzeria's costs appear below: Fixed Cost per Month Cost per Cost per Pizza Delivery Pizza ingredients. Kitchen staff $3.80 $5,220 Utilities 4- Delivery person. $630 $0.05 Delivery vehicle. $540 $3.50 $1.50 Equipment depreciation Rent $275 $1,830 Miscellaneous. $820 $0.15 In November, the pizzeria budgeted for 1,300 pizzas at an average selling price of $13.50 per pizza and for 200 deliveries. Data concerning the pizzeria's operations in November appear below: Actual Results Pizzas. Deliveries Revenue Pizza ingredients Kitchen staff Utilities 1,240 174 $17.420 $4.985 $5,281 $984 Delivery person $609 Delivery vehicle $655 Equipment depreciation $275 Rent $1,830 Miscellaneous $954 I Required: 1. Prepare a flexible budget performance report that shows both activity variances and revenue and spending variances for the pizzeria for November. 2. Explain the activity variances. (20 marks) (20 marks)