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 $13,000 per year per unit - Ten sealcoating employees each pald a salary of $59,000 per year (A total of 12,000 sealcoating hours are supplied by the 10 workers.) - Sealcoating materials: $400 per job - Sealcoating hours: 4 hours used per job During the year, the activity operated at 95 percent of capacity and incurred the following actual activity and resource costs: - Lease cost: $65,000 - Salaries: 5607,700 - Sealcoating materials: $1,134,100 Requiredt 1. Prepare a flexible budget formula for the sealcoating activity using seaicoating hours as the drivee Sealcoating cost 2. Prepare a performance report for the sealcotating 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. 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. 3. What if sealcoating employees were hired through outsourcing and paid $30 per hour (the sealcosting equipment is provided by Wade)? Repeat Requirement 1 for the outsourcing case- Seakcoting cost