4.

Cicchetti Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of December:

Cicchetti Corporation Comparison of Actual Results to Planning Budget For the Month Ended December 31
	Actual Results	Planning Budget	Variances
Customers served		42,000		41,000
Revenue (3.60q)	$	151,000	$	147,600	$	3,400	F
Expenses:
Wages and salaries($24,100 + $1.31q)		79,120		77,810		1,310	U
Supplies ($0.71q)		27,910		29,110		1,200	F
Insurance ($6,000)		6,000		6,000		0
Miscellaneous expense ($5,000 + $.40q)		20,200		21,400		1,200	F
Total expense		133,230		134,320		1,090	F
Net operating income	$	17,770	$	13,280	$	4,490	F

Required:

1.	Prepare a report showing the companys revenue and spending variances for December.(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)