3. Flexible budget, planning budget, activity variances - During September, ComeHome Corporation budgeted for 36,500 customers, but actually served 35,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:

• Revenue: $30.20q
• Wages: $12.50q
• Supplies: $4.20q
• Insurance: $17,400 per month
• Miscellaneous expense: $12,000 month + $2.40q

1. Prepare the company's planning budget for September (use Thursdays lecture slides and exhibit 9-2 of your text as a guide).
2. Prepare the company's flexible budget for September (use Thursdays lecture slides and exhibit 9-5 of your text as a guide).
3. Calculate the companys activity variances for each line item for September (use Thursdays lecture slides and exhibit 9-6 of your text as a guide). You must also indicate whether each specific activity variance is favorable (F) or unfavorable (U).