Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 36,000 customers, it actually served 27,400 customers. The company uses the following revenue and cost formulas in it budgeting, where q is the number of customers served:

Revenue: $5.10q

Wages and salaries: $34,800 + $1.58q

Supplies: $0.98q

Insurance: $12,000

Miscellaneous expenses: $8,000 + $0.46q

The company reported the following actual results for February:

Revenue: $151,800

Wages and salaries: $69,600

Supplies: $16,000

Insurance: $12,000

Miscellaneous expense: $25,700

Prepare the companys flexible budget performance report for February. Labor each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting F for favorable, U for unfavorable, and None for no effect (i.e., zero variance). I put all amounts as positive values.)

	Actual results	Revenue and spending variances	Flexible budget	Activity variances	Planning budget
Customers served	27,400		27,400		36,600
Revenue
Expenses:
Wages and salaries
Insurance
Miscellaneous expenses
Total expense
net operating income