Salem Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for February.

Required:

Assuming that 26 containers were actually refurbished during February, report showing the company's revenue and spending variances for February. Indicate in each case whether the variance is favorable (F) or unfavorable (U).

Variable Fixed Element Element per Actual Total for per Month Container February Refurbished Revenue $4,900 $129,900 Employee salaries and wages $58,400 $1,000 $84,200 Refurbishing materials $500 $13,200 Other expenses $39,100 $38,900