BabyBurr Enterprises uses customers served as its measure of activity. During February, the company budgeted for 35,100 customers, but actually served 33,400 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:

Revenue: $3.60q

Wages and salaries: $33,300 + $1.13q

Supplies: $0.53q

Insurance: $10,500

Miscellaneous expenses: $6,500 + $0.31q

The company reported the following actual results for February:

Revenue	$	121,800
Wages and salaries	$	68,100
Supplies	$	14,500
Insurance	$	10,500
Miscellaneous expense	$	18,200

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
Customers served	33,400			33,400			35,100
Revenue
Expenses:
Wages and salaries
Supplies
Insurance
Miscellaneous expense
Total expense
Net operating income