Pie Guys Pizzeria is owned and operated by three brothers. Data concerning the pizzerias monthly revenues and costs appear below (q refers to the number of pizzas served): Formula Revenue $14.75q Cost of ingredients $4.35q Rent $2,150 Utilities $350 + $0.25q Salaries $7,200 Miscellaneous $900 + $.45q Actual results for February appear below. Prepare a flexible budget performance report for the pizzeria for February for 2,200 pizzas. Revenue $32,000 Cost of ingredients 9,900 Rent 2,150 Utilities 918 Salaries 7,300 Miscellaneous 1,850 Required: a. Prepare a budget for 2,300 pizzas (this is the static budget). b. Prepare a budget for 2,200 pizzas (this is the flexible budget). c. Compute the activity variances between the two budgets and revenue/spending variances between the actual data and the flexible budget. Also indicate whether the variance is favorable or unfavorable.