please give me the specific steps, thanks.

More than One Cost Driver 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: Fixed Cost per Month Cost per Pizza Cost per Delivery $3.80 $5,220 $630 $0.05 Pizza ingredients. Kitchen staff... Utilities ....... Delivery person .. Delivery vehicle Equipment depreciation ... Rent ..... Miscellaneous ........ $3.50 $1.50 $540 $275 $1,830 $820 $0.15 In November, the pizzeria budgeted for 1,200 pizzas at an average selling price of $13.50 per pizza and for 180 deliveries. Data concerning the pizzeria's actual results in November appear below: Actual Results 1,240 174 Pizzas .... Deliveries .... Revenue ......... Pizza ingredients Kitchen staff.... Utilities ....... Delivery person ........ Delivery vehicle ... Equipment depreciation ........ Rent ........... Miscellaneous .... $17,420 $4,985 $5,281 $984 $609 $655 $275 $1,830 $954 Required: 1. Using Exhibits 98 and 99 as your guide, prepare a flexible budget performance report that shows both revenue and spending variances and activity variances tor the pizzeria tor November 2. Explain the activity variances. Exhibit 98 Performance Report Combining Activity Variances with Revenue and Spending Variances Rick's Hairstyling Flexible Budget Performance Report For the Month Ended March 31 Revenue and Spending Variances (1)-(2) Actual Results (2) Activity Flexible Variances Budget (2)-(3) 1,100 $198,000 $18,000 F (3) Planning Budget 1,000 $180,000 1,100 $194,200 $3,800 U Client-visits Revenue ($180.00q) ......... Expenses: Wages and salaries ($65,000 + $37.00q) ..... Hairstyling supplies ($1.50q). Client gratuities ($4.10q) ............. Electricity ($1,500 + $0.109) .......... Rent ($28,500)............. Liability insurance ($2,800) ............... Employee health insurance ($21,300) ..... Miscelaneous ($1,200 + $0.20g) ...... Total expense Net operating income .. 106.900 1,620 6,870 1,550 28,500 2,800 22,600 2,130 172,970 $ 21,230 1,200 U 30 F 2,360 U 60 F 0 0 1,300 U 710 U N 5,480 / $9,280 U 105,700 3,700 U 1,650 150 U 4,510 410 U 1.610 10 U 28,500 0 2.8000 21,300 . 1,420 20 U 167,490 4,290 U $ 30,510 $13,710 F 102,000 1,500 4,100 1,600 28,500 2,800 21,300 1,400 163,200 $ 16,800 Exhibit 99 Flexible Budget Based on More than One Cost Driver Rick's Hairstyling Flexible Budget For the Month Ended March 31 1.100 190 $198,000 Actual client-visits (91) ............ Actual hours of operation (92) ...... Revenue ($180.0001) ............ Expenses: Wages and salaries ($65,000 + $2200).. Hairstyling supplies ($1.5091) ........ Client gratuities ($4.1001) ...... Electricity ($390 + $0.10q, + $6.00q2) .... Rent ($28,500) ......... Liability insurance ($2,800) .......... Employee health insurance ($21,300) Miscellaneous ($1,200 + $0.2001) ... Total expense Net operating income .... 106,800 1,650 4,510 1,640 28,500 2,800 21,300 1,420 168,620 $ 29,380 More than One Cost Driver 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: Fixed Cost per Month Cost per Pizza Cost per Delivery $3.80 $5,220 $630 $0.05 Pizza ingredients. Kitchen staff... Utilities ....... Delivery person .. Delivery vehicle Equipment depreciation ... Rent ..... Miscellaneous ........ $3.50 $1.50 $540 $275 $1,830 $820 $0.15 In November, the pizzeria budgeted for 1,200 pizzas at an average selling price of $13.50 per pizza and for 180 deliveries. Data concerning the pizzeria's actual results in November appear below: Actual Results 1,240 174 Pizzas .... Deliveries .... Revenue ......... Pizza ingredients Kitchen staff.... Utilities ....... Delivery person ........ Delivery vehicle ... Equipment depreciation ........ Rent ........... Miscellaneous .... $17,420 $4,985 $5,281 $984 $609 $655 $275 $1,830 $954 Required: 1. Using Exhibits 98 and 99 as your guide, prepare a flexible budget performance report that shows both revenue and spending variances and activity variances tor the pizzeria tor November 2. Explain the activity variances. Exhibit 98 Performance Report Combining Activity Variances with Revenue and Spending Variances Rick's Hairstyling Flexible Budget Performance Report For the Month Ended March 31 Revenue and Spending Variances (1)-(2) Actual Results (2) Activity Flexible Variances Budget (2)-(3) 1,100 $198,000 $18,000 F (3) Planning Budget 1,000 $180,000 1,100 $194,200 $3,800 U Client-visits Revenue ($180.00q) ......... Expenses: Wages and salaries ($65,000 + $37.00q) ..... Hairstyling supplies ($1.50q). Client gratuities ($4.10q) ............. Electricity ($1,500 + $0.109) .......... Rent ($28,500)............. Liability insurance ($2,800) ............... Employee health insurance ($21,300) ..... Miscelaneous ($1,200 + $0.20g) ...... Total expense Net operating income .. 106.900 1,620 6,870 1,550 28,500 2,800 22,600 2,130 172,970 $ 21,230 1,200 U 30 F 2,360 U 60 F 0 0 1,300 U 710 U N 5,480 / $9,280 U 105,700 3,700 U 1,650 150 U 4,510 410 U 1.610 10 U 28,500 0 2.8000 21,300 . 1,420 20 U 167,490 4,290 U $ 30,510 $13,710 F 102,000 1,500 4,100 1,600 28,500 2,800 21,300 1,400 163,200 $ 16,800 Exhibit 99 Flexible Budget Based on More than One Cost Driver Rick's Hairstyling Flexible Budget For the Month Ended March 31 1.100 190 $198,000 Actual client-visits (91) ............ Actual hours of operation (92) ...... Revenue ($180.0001) ............ Expenses: Wages and salaries ($65,000 + $2200).. Hairstyling supplies ($1.5091) ........ Client gratuities ($4.1001) ...... Electricity ($390 + $0.10q, + $6.00q2) .... Rent ($28,500) ......... Liability insurance ($2,800) .......... Employee health insurance ($21,300) Miscellaneous ($1,200 + $0.2001) ... Total expense Net operating income .... 106,800 1,650 4,510 1,640 28,500 2,800 21,300 1,420 168,620 $ 29,380