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 39,000 38,000 Revenue (3.609) $ 140,500 $ 136,800 $ 3,700 F Expenses: Wages and salaries ($23,800 + $1.289) Supplies ($0.689) Insurance ($5,700) Miscellaneous expense ($4,700 + $.379) 73,720 23,240 5,700 16,160 72,440 25,840 5,700 18,760 1,280 U 2,600 F 2,600 F Total expense 118,820 122,740 3,920 F Net operating income $ 21,680 $ 14,060 $ 7,620 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 Revenue and Spending Results Variances 39,000 Flexible Budget Customers served $ 140,500 Revenue Expenses: Wages and salaries Supplies Insurance 73,720 23,240 5,700 16,160 118,820 21,680 Miscellaneous expense Total expense Net operating income $