Cicchetti Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of December: Cicchetti Corporation Comparison of Actual Results to Planning Budget For the Month Ended December 31 Actual Planning ResultsBudget Variances Customers served Revenue (3.40q) 34,000 33,000 $ 116,300 $ 112,200 $ 4,100 F Expenses Wages and salaries ($23,300 $1.23q) Supplies ($0.63q) Insurance ($5,200) Miscellaneous expense ($4,200 +$.32q) 65,120 63,890 1,230 U 18,690 20,790 2,100 F 5,200 12,660 14,760 2,100 F 5,200 0 Total expense 101,670 104,640 2,970 F Net operating income $ 14,630 $ 7,560 $ 7,070 F Required 1.Prepare a report showing the company's revenue and spending variances for December. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) CICCHETTI CORPORATION Revenue and Spending Variances For the Month Ended December 31 Actual Results Revenue and Spending Variances Flexible Budget Customers served 34,000 Revenue $ 116,300 Expenses Wages and salaries Supplies Insurance Miscellaneous expense 65,120 18,690 5,200 12,660 101,670 $14,630 Total expense Net operating income