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Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 35,200 customers, but actually served 32,800 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $3.70q Wages and salaries: $33,400+$1.16q Supplies: $0.56q Insurance: $10,600 Miscellaneous expenses: $6,600+$0.32q The company reported the following actual results for February: Required: Prepare the company's flexible budget performance report for February. Label each variance as 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. \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ Arrasmith Corporation } \\ \hline \multicolumn{6}{|c|}{ Flexible Budget Performance Report } \\ \hline \multicolumn{6}{|c|}{ For the Month Ended February 28} \\ \hline & \begin{tabular}{l} Actual \\ Results \end{tabular} & \begin{tabular}{c} Revenue and Spending \\ Variances \end{tabular} & \begin{tabular}{l} Flexible \\ Budget \end{tabular} & Activity Variances & \begin{tabular}{l} Planning \\ Budget \end{tabular} \\ \hline Customers served & 32,800 & & 32,800 & & 35,200 \\ \hline \multicolumn{6}{|l|}{ Revenue } \\ \hline \multicolumn{6}{|l|}{ Expenses: } \\ \hline \multicolumn{6}{|l|}{ Wages and salaries } \\ \hline \multicolumn{6}{|l|}{ Supplies } \\ \hline \multicolumn{6}{|l|}{ Insurance } \\ \hline \multicolumn{6}{|c|}{ Miscellaneous expense } \\ \hline \multicolumn{6}{|l|}{ Total expense } \\ \hline Net operating income & & & & & \\ \hline \end{tabular}

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