18.

Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 35,700 customers, but actually served 29,800 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:

Revenue: $4.20q

Wages and salaries: $33,900 + $1.31q

Supplies: $0.71q

Insurance: $11,100

Miscellaneous expenses: $7,100 + $0.37q

The company reported the following actual results for February:

Revenue	$	133,800
Wages and salaries	$	68,700
Supplies	$	15,100
Insurance	$	11,100
Miscellaneous expense	$	21,200

Required:

Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U).