Wade Paving Company has a sealcoating activity and wants to develop a flexible budget formula for the activity. The following resources are used by the activity: Five truck-mounted sealing units, with a lease cost of $11,000 per year per unit Ten sealcoating employees each paid a salary of $46,000 per year (A total of 9,000 sealcoating hours are supplied by the 10 workers.) Sealcoating materials: $300 per job Sealcoating hours: 3 hours used per job During the year, the activity operated at 90 percent of capacity and incurred the following actual activity and resource costs: Lease cost: $55,000 Salaries: $473,800 Sealcoating materials: $805,400 Required: 1. Prepare a flexible budget formula for the sealcoating activity using sealcoating hours as the driver. Sealcoating cost $ 2. Prepare a performance report for the sealcoating activity. In the last column of Wade Paving Company Activity-Based Performance Report, if variance amount is unfavorable select "U", select "F", if it is Favorable and select "NA" if there is no variance. Activity Sealcoating: Fixed cost Actual Cost Wade Paving Company Activity-Based Performance Report Budgeted Cost (90% level) Budget Variance Variance Variable cost 3. What if sealcoating employees were hired through outsourcing and paid $30 per hour (the sealcoating equipment is provided by Wade)? Repeat Requirement 1 for the outsourcing case. Sealcoating cost +