Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 35,200 customers, but actually served 32,800 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:

Revenue: $3.70q

Wages and salaries: $33,400 + $1.16q

Supplies: $0.56q

Insurance: $10,600

Miscellaneous expenses: $6,600 + $0.32q

The company reported the following actual results for February:

Revenue	$	123,800
Wages and salaries	$	68,200
Supplies	$	14,600
Insurance	$	10,600
Miscellaneous expense	$	18,700

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 Results	Revenue and Spending Variances		Flexible Budget	Activity Varaiances		Planning Budget
Customers served	32,800			32,800			35,200
Revenue
Expenses:
Wages and salaries
Supplies
Insurance
Miscellaneous expense
Total expense
Net operating income