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In: Accounting

AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost...

AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February:

Fixed Component
per Month
Variable
Component per Job
Actual Total
for February
Revenue $ 277 $ 36,030
Technician wages $ 8,500 $ 8,350
Mobile lab operating expenses $ 4,500 $ 31 $ 8,680
Office expenses $ 2,800 $ 3 $ 3,070
Advertising expenses $ 1,610 $ 1,680
Insurance $ 2,880 $ 2,880
Miscellaneous expenses $ 950 $ 2 $ 535

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,500 plus $31 per job, and the actual mobile lab operating expenses for February were $8,680. The company expected to work 140 jobs in February, but actually worked 146 jobs.

Required:

Prepare a flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and activity variances for February

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