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TB Problem Qu. 10-287 Cicchetti Corporation uses customers... Cicchetti Corporation uses customers served as its...

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Accounting

TB Problem Qu. 10-287 Cicchetti Corporation uses customers...

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 38,000 36,000
Revenue ($4.9q) $ 187,200 $ 176,400 $ 10,800 F
Expenses:
Wages and salaries ($37,500 + $1.7q) 105,600 98,700 6,900 U
Supplies ($0.6q) 22,200 21,600 600 U
Insurance ($14,500) 14,950 14,500 450 U
Miscellaneous expense ($7,500 + $0.4q) 24,650 21,900 2,750 U
Total expense 167,400 156,700 10,700 U
Net operating income $ 19,800 $ 19,700 $ 100 F

Required: Prepare the company's flexible budget performance report for December. Select each variance as favorable (F), unfavorable (U) or "None".

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