Question

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".

Answer 1