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 43,000 42,000 Revenue (3.500) $ 150,300 $ 147,000 $ 3,300 F Expenses: Wages and salaries ($24,200 + $1.324) Supplies ($0.729) Insurance ($6,100) Miscellaneous expense (55,100 + $.419) 80,960 28,840 6,100 20,920 79,640 30,240 6,100 22,320 1,320 U 1,400 F 0 1,400 F Total expense 136,820 138,300 1,480 F Net operating income $ 13,480 S 8,700 $ 4,780 F 36 Required: 1. Prepare a report showing the company's revenue and spending variances for December, (indicate the effect of each variance by selecting "p" for favorable, "U" for unfavorable, and "None" for no effect (1.o., zero variance).) Pel CICCHETTI CORPORATION Revenue and Spending Variances For the Month Ended December 31 Actual Revenue and Spending Results Variances 43,000 Tut Flexible Budget Customers served $ 150,300 Revenue Expenses: Wages and salaries Supplies Insurance 80,960 28,840 6,100 20,920 136,820 13,480 Miscellaneous expense Total expense $ Net operating income