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Cicchetti Corporation uses customers served as its measure of activity. The following report compares the...

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Accounting

Cicchetti Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of December:

Cicchetti Corporation Comparison of Actual Results to Planning Budget For the Month Ended December 31
Actual Results Planning Budget Variances
Customers served 31,000 30,000
Revenue (3.50q) $ 108,800 $ 105,000 $ 3,800 F

Expenses:
Wages and salaries ($23,000 + $1.20q) 60,200 59,000 1,200 U
Supplies ($0.60q) 16,100 18,000 1,900 F
Insurance ($4,900) 4,900 4,900 0
Miscellaneous expense ($3,900 + $.40q) 14,000 15,900 1,900 F

Total expense 95,200 97,800 2,600 F

Net operating income $ 13,600 $ 7,200 $ 6,400 F

Required:
1.

Prepare a report showing the companys revenue and spending variances for December. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

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