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 $46,000 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: $44,000 Salaries: $289,800 Parts and supplies: $715,400 Required: 1. Prepare a flexible budget formula for the welding activity using welding hours as the driver. Welding cost Feedback Check My Work 300 X X 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 select "U", select "F", if it is Favorable and select "NA" if there is no variance. Foy Company Activity-Based Performance Report Actual Cost Budgeted Cost (80% level) Budget Variance Variance Activity Welding: Fixed cost Variable cost Feedback Check My Work $ U 3. What if welders were hired through outsourcing and paid $30 per hour (the welding equipment is provided by Foy)? Repeat Requirement 1 for the outsourcing case. Welding cost X Check My Work ?