Fixed Cost Cost per Cost per per Month Pizza Delivery Pizza ingredients $3.80 Kitchen staff $5,220 Utilities $630 $0.05 Delivery person $3.50 Delivery vehicle $540 $1.50 Equipment depreciation $275 Rent $1,830 Miscellaneous $820 $0.15 In November, the pizzeria budgeted for 1,200 pizzas at an average selling price of $13.50 per pizza and for 180 deliveries. Data concerning the pizzeria's actual results in November were as follows: Actual Results Pizzas Deliveries 1,240 174 Revenue $17,420 Pizza ingredients $4,985 Kitchen staff $5,281 Utilities $984 Delivery person $609 Delivery vehicle $655 Equipment depreciation $275 Rent $1,830 Miscellaneous $954 Required: 1. Using Exhibit 9-11 as your guide, prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November. 2. Explain the activity variances. Flexible Budget Performance Report For the Month Ended Avenue 30 ATW Spending Pete Actuty Pan (0) Delivers (0) Revenue ( Expense Pa ingredients C then staff ( Delivery person ( Delivery vehicles Equipment depreciato Rent ( Miscellaneous (5 Total expense. Net operating income. 2. Please comment on the activity variances and the spending variances (please note the book is only asking for activity variances, but please cover both). What can you observe? What could be the reasons for these variances