Show all your work including assumptions, statements, arguments, etc.$|$

$(40$ points$)$ CBA, a bicycle manufacturer, uses an activity based costing system for budgeting.

CBA has identified four cost centers and their associated cost$-$drivers. The variable and fixed

costs for each activity are listed below, along with cost$-$driver activity.

CBA has developed a flexible budget for each activity based on the following activity. We

assume that the manufacturer sells each unit of its product for $$65.$

$(1)$ Develop flexible budget formula for each of the activities.

$(2)$ Calculate the budgeted total cost for all the activity level in each of the activity centers.

$(3)$ Determine the total costs and operating incomes for the manufacturer under each of the

activity levels.

$(4)$ Given the actual results in the following table, prepare a cost control performance report

comparing the flexible budget to actual results for each activity, including flexible$-$budget

variances. Similarly prepare an overall performance report for operating income.