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 46,000 45,000 Revenue (3.60q) $ 165,300 $ 162,000 $ 3,300 F Expenses: Wages and salaries ($24,500 + $1.35q) 86,600 85,250 1,350 U Supplies ($0.75q) 31,950 33,750 1,800 F Insurance ($6,400) 6,400 6,400 0 Miscellaneous expense ($5,400 + $.44q) 23,400 25,200 1,800 F Total expense 148,350 150,600 2,250 F Net operating income $ 16,950 $ 11,400 $ 5,550 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).)