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Performance report- Tasty Company- Q1 You may use the template which was sent to you by e-mail to help you answer the questions whic Tasty Company operates four food trucks whic h mainly serve food near stadiums piloc to sporting events and concerts. It prepares monthly budgets. At the end each month the accounting department prepares a "performance report npany uses customers served as its measure of activity. Planning (static) budget amounts and actual results for the month of June are below Complete the performance report (table) given below and then answer the question which follows below the table. Actual Revenue Flexible busel Acivity Planning Total Resulits& ancs Statc arince Spending Budget Customers 10500 10,000 served (a) Revenue$99 640 ($9.00q) Expenses: Wages and $30020 $12.000- 10,000 Customers 10600 served (g) Revenue $99,640 $90,000 $9.00q) $22000 Expenses: Wages and $:0020 salaries ($12.000+ $1.50q) $42,000 COGS ($4.20g) $42.930 00 $5,300 Insurance $5,4 $5,300) 2.530 $3.500 Miscellaneous ($2.000+ S15q) Total expenses S80880 Net operating $13 760 512.200 ncome Net operating $18.60 income $12.200 Which one of the following statements is correct (true) with respect to the information give n above andlor the preparation and use of a performance teport? Multiple Choice The sum of all activity and "revenue and spending vonances must equal the difference between the plenning budget "net operating income" and the actual "net operating income Miscellaneous" costs for Tasty Company can be best e cost does not use pertormance reports but rather uses the four basic finencial accounting statements (e.g. the income statement) in fulfilling its planning and control responsiblities Selling to customers at a higher selling price per unt han budgeted would resultin an unfavorable "revenue & cost teg cOGS) spending veriance for a unit-reloted He efer to the information given above for Tasty Company he "total" varlance can always be broken down into two components, an factivity' varlance and a "revenue & spending" variance hich one of the following is true for the "Miscellancous" cost varlances for Tasty Company for the month of June? A. B. C. D. Activily Variancc Favorable Favorable Unfavorable Unfavorable Favorable Unfavorable Favorable Unfavorable B. . D. Favorable Unfavorable Unfavorable Unfavorable Favorable Unfavorable Multiple Choice