Varriano Corporation bases its budgets on the activity measure customers served. During October, the company planned to serve 26,000 customers, but actually served 25,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting: Revenue Wages and salaries Supplies Insurance Miscellaneous expense Customers served Revenue Expenses: 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). Wages and salaries Supplies Insurance Note: 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. Miscellaneous expense Total expense Net operating income Fixed element per month $ 36,000 $ 0 $ 7,000 $ 6,000 Flexible Budget Varriano Corporation Activity Variances For the Month Ended October 31 25,000 Planning Budget Variable element per customer $ 3.85 $ 1.11 $ 0.41 $ 0.00 $ 0.31 26,000 7,000 Activity Variances U F F 0 None F F U

Varriano Corporation bases its budgets on the activity measure customers served. During October, the company planned to serve 26,000 customers, but actually served 25,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting: 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). Note: 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