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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 $ 275 $ 30,250
Technician wages $ 8,200 $ 8,050
Mobile lab operating expenses $ 4,900 $ 31 $ 8,460
Office expenses $ 2,300 $ 3 $ 2,510
Advertising expenses $ 1,570 $ 1,640
Insurance $ 2,850 $ 2,850
Miscellaneous expenses $ 950 $ 1 $ 375

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $31 per job, and the actual mobile lab operating expenses for February were $8,460. The company expected to work 120 jobs in February, but actually worked 122 jobs.

Required:

Prepare a flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and activity variances for February. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

AirQual Test Corporation
Flexible Budget Performance Report
For the Month Ended February 28
Actual Results Flexible Budget Planning Budget
Jobs 122
Revenue $30,250
Expenses:
Technician wages 8,050
Mobile lab operating expenses 8,460
Office expenses 2,510
Advertising expenses 1,640
Insurance 2,850
Miscellaneous expenses 375
Total expense 23,885
Net operating income $6,365

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