ABC Corporation uses customers served as its measure of activity. During March, the company budgeted for $35,000$ customers, but actually served $34,000$ customers.

The company prepared the following flexible budget performance report as follows.

ABC Corporation

Flexible Budget Performance Report

For the Month Ended March $31$

Actual

Results

Revenue and Spending Variances

Flexible

Budget

Activity

Variances

Planning

Budget

Customers served $($q$)$

$34,000$

$34,000$

$35,000$

Revenue $($$$3\mathrm{.}50$q$)$

$

$119,800$

$

$800$

$

$119,000$

$

$3,500$

$

$112,500$

Expenses:

Wages and salaries $($$$33,200+$ $$1\mathrm{.}10$q$)$

$68,000$

$2,600$

$70,600$

$1,100$

$71,700$

Supplies $($$$0\mathrm{.}50$q$)$

$14,400$

$2,600$

$17,000$

$500$

$17,500$

Insurance $($$$10,400)$

$10,400$

$0$

$10,400$

$0$

$10,400$

Miscellaneous expense $($$$6,400+$ $$0\mathrm{.}30$q$)$

$17,700$

$1,100$

$16,600$

$300$

$16,900$

Total expense

$110,500$

$4,100$

$114,600$

$1,900$

$116,500$

Net operating income

$

$9,300$

$

$4,900$

$

$4,400$

$

$1,600$

$

$6,000$

Which of the following statement is true?

Group of answer choices

The revenue and spending variance for total expense of $$4,100$ is unfavorable.

The revenue and spending variance for wages and salaries of $$2,600$ is unfavorable.

The activity variance for revenue of $$3,500$ is unfavorable.

The activity variance for supplies of $$500$ is unfavorable.

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