please answer 3 and 4 
3 You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. 5 points After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Actual Cost in eBook Cost Formula $16,700 plus $0.13 per machine- hour $38,400 plus $1.40 per machine-hour March Utilities $20,710 56,000 Maintenance Indirect 1abor S94.000 plus $1.10 per machine-hour $113,600 Print $68,000 Depreciation 69,700 References During March, the company worked 15,000 machine-hours and produced 9,000 units. The company had originally planned to work 17,000 machine-hours during March Required Calculate the activity variances for March. 2. Calculate the spending variances for March 4 Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria's owner has determined that the shop has two major cost drivers-the number of pizzas sold and the number of deliveries made The pizzeria's cost formulas appear below: points Fixed Cost per Cost per COst Pizza Delivery th pe Pizza ingredients Kitchen staff 4.60 eBook $6,170 740 Utilities 0.60 Delivery person Delivery vehicle $3.40 $1.60 $ 760 Print Equipment depreciation $2,130 $ 860 Miscellaneous 0.20 References In November, the pizzeria budgeted for 1,950 pizzas at an average selling price of $20 per pizza and for 190 deliveries. Data concerning the pizzeria's actual results in November appear below: Actual Results Pizzas 2,050 Deliveries 170 $ 41,680 Revenue Pizza ingredients Kitchen staff 9,550 6,110 sOrarTtan person 578 Delivery vehicle Equipment depreciation 1,012 504 $ 2,130 Rent Miscellaneous 868 Required: .Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Flexible Planning Budget Actual Budget Results Pizzas 2,050 Deliveries 170 Revenue 41,680 Expenses: Pizza ingredients 9,550 Kitchen staff 6,110 950 Utilities Delivery person 578 1,012 Delivery vehicle 504 Equipment depreciation Rent 2,130 868 Miscellaneous Total expense 21,702 Net operating income $ 19,978
