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 Results		Planning Budget		Variances
Customers served		25,000		24,000
Revenue (3.50q)	$	88,000	$	84,000	$	4,000	F
Expenses:
Wages and salaries ($22,400 + $1.14q)		50,900		49,760		1,140	U
Supplies ($0.54q)		11,660		12,960		1,300	F
Insurance ($4,300)		4,300		4,300		0
Miscellaneous expense ($3,300 + $.34q)		10,160		11,460		1,300	F
Total expense		77,020		78,480		1,460	F
Net operating income	$	10,980	$	5,520	$	5,460	F

Required:

1.	Prepare a report showing the companys 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 25,000 $ 88,000 Revenue Expenses Wages and salaries Supplies Insurance Miscellaneous expense 50,900 11,660 4,300 10,160 77,020 $10,980 Total expense Net operating income