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 Customers served Revenue ($5.2q) Expenses: Results 32,000 $167,100 Planning Budget Variances 28,500 $148,200 $18,900 F Wages and salaries ($36,900 +$1.4q) 84,600 76,800 7,800 U Supplies ($0.8q) Insurance ($13,900) Total expense Net operating income 25,300 22,800 2,500 U 14,050 13,900 150 U Miscellaneous expense ($6,900 + $0.5q) 24,550 21,150 3.400 U 148,500 134,650 13,850 U $ 18,600 $ 13,550 $ 5,050 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 32,000 32,000 Revenue $167,100 $ 18,900 F $ 188,000 Expenses: Wages and salaries Supplies Insurance Miscellaneous expense Total expenses 0 Net operating income Cicchetti Corporation Flexible Budget Performance Report Part 2 For the Month Ended December 31 Flexible Budget Activity Variances Planning Budget