Below are the planning budget and actual results of operation of Amy's Hair Salon for the month June 2017. Planning Budget Actual Number of hairdos (q ) 240 250 $ $ Revenue ($10q ) 2,400 2,510 Expenses: Materials ($3.5q ) 840 900 Wages and salaries ($500 +$0.6*q ) 644 675 Utilities ($100 + $1.5q ) 460 500 Rent 180 180 Insurance 85 85 Depreciation of equipments 80 80 Total expenses 2,289 2,420 Net operating income 111 90 Amy's Hair Salon Required: (a) what will be a flexible budget for the actual level of activity. (b) Prepare a report showing the activity variances, and revenue and spending variances for June 2017 (c) Would you say that management did not do well in controlling costs? Explain the basis for your answer.