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 Results Budget Variances Customers served Revenue ($4.5q) 37,000 $166,750 33,500 $150,750 $16,000 F Expenses: Wages and salaries ($36,000 +$1.5q) 93,500 86,250 7,250 U Supplies ($0.8q) 29,050 26,800 2,250 U Insurance ($13,000) Total expense Net operating income 13,250 13,000 250 U Miscellaneous expense ($6,000+ $0.3q) 18,300 16,050 2,250 U 154,100 142,100 12,000 U $ 12,850 $ 8.650 $ 4,000 F Required: Prepare the company's flexible budget performance report for December. Select each variance as favorable (F), unfavorable (U) or "None". Cicchetti Corporation Flexible Budget Performance Report Part 1 For the Month Ended December 31 Actual Results Revenue and Spending Variances Flexible Budget Customers served Expenses: Total expenses Net operating income Cicchetti Corporation Flexible Budget Performance Report Part 2 For the Month Ended December 31 Flexible Budget Activity Variances Planning Budget Customers served Expenses: Total expenses Net operating income