1. 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 S14.15q $4.60q S2,050 $300 + S0.15q S6,000 S500 +S.65q Actual results for February appear below. Prepare a flexible budget performance report for the pizzeria for February for 1,300 pizzas. Revenue 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. Actual Results Flexible Budget Activity Variances Planning Budget Actual Units Revenue & Spending Variances Revenue Expenses Cost of ingredients Rent Utilities Salaries Miscellaneous Total expenses Net operating ncome