Chapter 9- Practice Problems SHOW YOUR WORK 10. Varriano Corporation bases its budgets on the activity measure customers served. During October, the company planned to serve 31,000 customers, but actually served 34,000 customers. T he company has provided the following data concerning the formulas it uses in its budgeting: Fixed element per month Variable element per customer $ 3.60 $ 1.00 $ 0.80 $ 0.00 $ 0.10 Revenue Wages and salaries Supplies Insurance Miscellaneous expense $ 35,100 $ 8,700 S 4,700 Required: Prepare a report showing the company's activity variances for October. Indicate in each case whether the variance is favorable (F) or unfavorable (U)