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 revenue and spending varlances listed in the table below. Explain which variances should be of concern for management? Actual Results Revenue and Spending Variances Flexible Budget Customers served 34.000 34.000 119.800 $ 800 F $ 119.000 Revenue ($3.500 Expenses: Wages and salaries ($33.200 - $110) 68,000 2.600 F 70.600 Supplies ($0.500) 14.400 2.600 F 17.000 Insurance ($10.400) 10,400 0 10,400 Miscellaneous expense ($6,400 $0.300 17700 1,100 U 16,600 114,600 Total expense 110,500 4.100 F Net operating income $9,300 $ 4.900 F $ 4,400