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 36,000 35,000 Revenue (3.40q) $ 122,800 $ 119,000 $ 3,800 F Expenses: Wages and salaries ($23,500 + $1.25q) 68,500 67,250 1,250 U Supplies ($0.65q) 20,450 22,750 2,300 F Insurance ($5,400) 5,400 5,400 0 Miscellaneous expense ($4,400 + $.34q) 14,000 16,300 2,300 F Total expense 108,350 111,700 3,350 F Net operating income $ 14,450 $ 7,300 $ 7,150 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 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 36,000 35,000 122,800 119,000 F $3,800 Revenue (3.40q) Expenses: Wages and 68,500 67,250 1,250 U salaries ($23,500 $1.25q) Supplies ($0.65q) 20,450 22,750 2,300 F Insurance ($5,400) 5,400 5,400 Miscellaneous expense 14,000 16,300 2,300 F ($4,400 $.34q) 108,350 111,700 3,350 F Total expense Net operating income $14,450 7,300 $7,150 F