Sincell Corporation uses customers served as its measure of activity. During April, the company budgeted for 22,000 customers, but actually served 24,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:Revenue: $4.10qWages and salaries: $26,000 + $1.10qSupplies: $0.70qInsurance: $7,100Miscellaneous expense: $3,400 + $0.30qThe company reported the following actual results for April:
Required:Prepare a report showing the company's revenue and spending variances for April. Label each variance as favorable (F) or unfavorable (U).