Problem 6. (11 points). Joe's Bakery (JB) planned for the sale of 1,000 donuts at $2.50 each in November 2023. JB's budgeted costs per donut included (a) ingredients at $0.50 per donut, (b) labor at $0.25 per donut, and (c) variable overhead at $0.25 per donut. Total budget fixed overhead was $500. Thus, JB's master budget looked as follows: In November, JB's actually sold 900 donuts, generating $1,800 in revenue. For November, JB's direct material costs were $480, direct labor costs $220, and variable overhead $250. Total fixed overhead was $600. Required: 1. Prepare a flexible budget for JB's Bakery for November that includes separate variable-cost budgets for each type of cost (direct materials, etc.) Determine the variance between the flexible budget and actual cost for each item. (6 points) 2. Calculate the sales price and sales volume variance for JB's Bakery (3 points) 3. Dollar-wise, what was the most important reason JB's Bakery did not generate net income of $1,000 ? What is the second most important reason? (2 points)