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 ResultsBudgetVariances Customers served Revenue (3.50q) 31,000 30,000 $108,800 $ 105,000 $ 3,800 F Expenses Wages and salaries ($23,000$1.20q) Supplies (S0.60q) Insurance ($4,900) Miscellaneous expense ($3,900 $.40q) 14,000 15,900 1,900 F 60,200 59,000 1,200 U 16,100 18,000 1,900 F 4,900 4,900 Total expense 95,200 97,800 2,600 F Net operating income $ 13,600$ 7,200 S 6,400 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 Results Revenue and Spending Variances Flexible Budget Customers served 31,000 Revenue $ 108,800 Expenses Wages and salaries Supplies Insurance Miscellaneous expense 60,200 16,100 4,900 14,000 95,200 S 13,600 Total expense Net operating income