Cornerstone Exercise 12.4 (Algorithmic) Activity-Based Flexible Budgeting Foy Company has a welding activity and wants to develop a flexible budget formula for the activity. The following resources are used by the activity: Four welding units, with a lease cost of $14,000 per year per unit Six welding employees each paid a salary of $51,000 per year (A total of 9,000 welding hours are supplied by the six workers.) Welding supplies: $300 per job Welding hours: 3 hours used per job During the year, the activity operated at 80 percent of capacity and incurred the following actual activity and resource costs. Lease cost: $56,000 Salaries: $321,300 Parts and supplies: $714,900