Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 36,600 customers, but actually served 27,400 customers. The company uses the following revenue and cost formulas in its 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 Required: Prepare the company's flexible budget performance report for February. Label 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). Input all amounts as positive values.)

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

Required:

Prepare the company's flexible budget performance report for February. Label 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). Input all amounts as positive values.)

Arrasmith Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Revenue and Results Variances FlexibleActivity Budget Varaiances Planning Budget Customers served Revenue Expenses: 27,400 27,400 36,600 Wages and salaries Supplies Insurance Miscellaneous expense Total expense Net operating income