uses customers served (Q) as its measure of activity. The following report compares the planning budget to the actual results for December. The numbers in parentheses show the formulas used for each budget item Cicchetti Corporation For the Month Ended December 31 Customers served (a) Revenue ($3.60q) Expenses: Actual Results 46,000 165.300 Planning Budget 45,000 S162.000 $86,600 31,950 S6,400 23400 148.350 $16,950 $85,250 S33,750 $6,400 Wages and salaries ($24,500+$1.35q) Supplies (S0.75q) Insurance ($6,400) Miscellaneous expense ($5,400+$0.444) Total expense 150.600 $11,400 Net operating income As part of revenue and spending variances, what is the company's flexible budget net operating income variance? A. $1,810 Favorable B. $1,870 Unfavorable C. $3,430 Favorable D. $4,490 Favorable E. $4,490 Unfavorable