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 22,000 21,000
Revenue (3.40q) $75,200 $71,400 $3,800 F
Expenses:
Wages and salaries
($22,100 + $1.11q) 46,520 45,410 1,110 U
Supplies ($0.51q) 9,710 10,710 1,000 F
Insurance ($4,000) 4,000 4,000
Miscellaneous expense
($3,000 + $0.31q) 8,510 9,510 1,000 F
Total expense 68,740 69,630 890 F
Net operating
income $6,460 $1,770 $4,690 F
Required:
Prepare a report showing the company's revenue and spending variances for December. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
Cicchetti Corporation
Revenue and Spending Variances
For the Month Ended December 31

Answer 1

Answer and Explanation:

The Preparation of the company's revenue and spending variances for December is prepared below:-

The report with respect to the company revenue and spending variance is presented in the attachment below

The revenue refers to the sales of the company

And, the spending variance refers to the difference between the actual amount of expenses incurred and the budgeted amount of expenses incurred. The same is shown in the below attachment.