10, Nanook Corporation uses customers served as its measure of activity. The company estimated that it would serve 32,500 customers. It bases its budgets on the following information: Revenue should be $4.50 per customer served. Wages and salaries should be $38,300 per month plus $1.40 per customer served. Supplies should be $0.80 per customer served. Insurance should be $10,100 per month Miscellaneous expenses should be $5,400 per month plus $0.40 per customer served. The company reported the following actual results for December: Customers served 31,000 Revenue $138,100 Wages and salaries $82,900 Supplies $26,200 Insurance $9,800 Miscellaneous expense $20,400 Required: 6 points) a. Prepare the company's flexible budget for December based on the actual level of activity for the month. Do not forget to calculate total expenses and net income. b. Prepare a report showing the company's revenue and spending variances for December. Label each variance as favorable (F) or unfavorable (U)