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 $12,000 per year per unit - Six welding employees each paid a salary of $49,000 per year (A total of 12,000 welding hours are supplied by the six workers.) - Welding supplies: $400 per job - Welding hours: 4 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: $48,000 - Salaries: $308,700 - Parts and supplies: $955,100 Required: 1. Prepare a flexible budget formula for the welding activity using welding hours as the driver. Welding cost = +:x Feectback TCheck My Work 1. Activity flexible budgeting is the prediction of what activity costs will be as activity output changes. 2. Prepare a performance report for the welding activity. In the last column of Foy Company Activity-Based Performance Report, if variance amount is unfavora Feectback TCheck My Work 2. A performance report shows actual cost, budgeted cost, and budget variance (favorable or unfavorable) for fixed cost and variable cost