Cicchetti Corporationuses customers served as its measure of activity. The followingreport compares the planning budget to the actual operating resultsfor the month of December:
CicchettiCorporation
Comparison of Actual Results to Planning Budget
For the Month Ended December 31 |
| ActualResults | PlanningBudget | Variances | | |
| Customers served | | 40,000 | | | 35,000 | | | | | | |
| Revenue ($4.8q) | $ | 192,400 | | $ | 168,000 | | $ | 24,400 | | F | |
| Expenses: | | | | | | | | | | | |
| Wages and salaries ($36,300 + $1.7q) | | 106,600 | | | 95,800 | | | 10,800 | | U | |
| Supplies ($0.9q) | | 35,300 | | | 31,500 | | | 3,800 | | U | |
| Insurance ($13,300) | | 13,700 | | | 13,300 | | | 400 | | U | |
| Miscellaneous expense ($6,300 + $0.4q) | | 23,650 | | | 20,300 | | | 3,350 | | U | |
| Total expense | | 179,250 | | | 160,900 | | | 18,350 | | U | |
| Netoperating income | $ | 13,150 | | $ | 7,100 | | $ | 6,050 | | F | |
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Prepare the company's flexible budget performance report forDecember. Select each variance as favorable (F), unfavorable (U) or"None".
