Varriano Corporation bases its budgets on the activity measure customers served. During October, the company planned to serve 31,000 customers, but actually served 29,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting: Fixed element per month Revenue Wages and salaries Supplies Insurance Miscellaneous expense $ 36,500 $ $ 7,500 $ 6,500 Variable element per customer $ 3.90 $ 1.16 0.46 $ 0.00 0.36 Required: Prepare a report showing the company's activity variances for October. Indicate in each case whether the variance is favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Varriano Corporation Activity Variances For the Month Ended October 31 Flexible Planning Budget Budget 29,000 31,000 Activity Variances Customers served Revenue Expenses: Wages and salaries Supplies Insurance Miscellaneous expense Total expense Net operating income