Part 2. Problems. There are three problems and one bonus problem. Each one is worth the score indicated next to the problem number. Show all work for complete credit. You may attach extra pages if you so desire. Please be NEAT when writing your answers. I cannot grade illegible answers. (30 points possible) 8 points) Pie Guys Pizzeria is owned and operated by three brothers. Data monthly revenues and costs appear below (q refers to the concerning the pizzeria's number of pizzas served): Revenue Cost of ingredients Rent Utilities Salaries Miscellaneous 14.15q $4.60q S2,050 $300+ $0.15q $6,000 $500+ S.65q Actual results for February appear below. Prepare a flexible budget performance report for the pizzeria for February for 1,300 pizzas. Revenue Cost of ingredients Rent Utilities Salaries Miscellaneous $18,500 6,100 2,050 608 6,200 1,050 Required: a. b. c. Prepare a budget for 1,400 pizzas (this is the planning budget). Prepare a budget for 1,300 pizzas (this is the flexible budget). Compute the activity variances between the two budgets and revenue/spending variances between the actual data and the flexible budget. Also indicate whether the variance is favorable or unfavorable. Actual Units Actual Revenue &Flexible Activity Results Spending Budget Variances Planning VariancesBudget Revenue Expenses: Cost of ingredients Rent Utilitiles Salaries Miscellaneous Total expenses Net operating income