Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 35,500 customers, but actually served 31,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $4.000 Wages and salaries: $33,700 + $1.259 Supplies: $0.650 Insurance: $10,900 Miscellaneous expense: $6,900 + $0.35q 42 The company reported the following actual results for February: Revenue Wages and salaries Supplies Insurance Miscellaneous expense $129,800 $ 68,500 $ 14,900 $ 10,900 $ 20,200 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 Variances Planning Budget 31,000 31,000 35,500 Customers served Revenue Expenses: Wages and salaries Supplies Inenranre Wages and salaries: $33,700 + $1.259 Supplies: $0.650 Insurance: $10,900 Miscellaneous expense: $6,900 + $0.350 The company reported the following actual results for February: Revenue Wages and salaries Supplies Insurance Miscellaneous expense $ 129,800 $ 68,500 $ 14,900 $ 10,900 $ 20,200 37 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 Variances Planning Budget 31,000 31,000 35,500 Customers served Revenue Expenses: Wages and salaries Supplies Insurance Miscellaneous expense Total expense Net operating income