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 $11,000 per year per unit Six welding employees each paid a salary of $50,000 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 90 percent of capacity and incurred the following actual activity and resource costs. Lease cost: $44,000 Salaries: $315,000 Parts and supplies: $805,000 Required: 1. Prepare a flexible budget formula for the welding activity using welding hours as the driver. Welding cost 33300C 100 Show All Feedback Hide 2. Prepare a performance report for the welding activity. In the last column of Foy Company Activity-Based Performance Report, if variance amount is unfavorable enter "U enter "F if it is Favorable and enter "NA" if there is no variance. Foy Company Activity-Based Performance Report Budgeted Cost (90% level) Budget Variance Activit Actual Cost Variance Welding: s Fixed cost Variable cost