During September, ComeHome Corporation budgeted for 24,000 customers, but actually served 28,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:

• Revenue: $51.50q
• Wages: $14.00q
• Supplies: $8.20q
• Insurance: $7,300 per month
• Rent: $3,950 per month
• Miscellaneous expense: $3,000 month + $4.40q

1. Prepare the company's planning budget for September (use Thursdays lecture slides and exhibit 9-2 of your text as a guide).
2. Prepare the company's flexible budget for September (use Thursdays lecture slides and exhibit 9-5 of your text as a guide).
3. Calculate the companys activity variances for each line item for September (use Thursdays lecture slides and exhibit 9-6 of your text as a guide). You must also indicate whether each specific activity variance is favorable (F) or unfavorable (U).