3) (3 points) Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 35,000 customers, but actually served 34,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $3.50q Wages and salaries: $33,200+ $1.10q Supplies: $0.50q Insurance: $10,400 Miscellaneous expense: $6,400+ $0.30q The company reported the following actual results for February: Revenue Wages and salaries Supplies Insurance Miscellaneous expense Required: $ 119.800 $ 68,000 $ 14,400 $ 10,400 $ 17,700 Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U). Actual Rev& Spending Flexible activity Planning Result Var Budget Variance Budget No. of customers (Q) 34,000 Revenue 119,800 Expenses: Wages and salaries 68,000 Supplies 14,400 Insurance 10,400 Misc. expense 17,700 Total expenses 110,500 Net operating income 9,300