AirQual Test Corporation

Flexible Budget Performance Report

For the Month Ended February $28$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 $ $280$ $ $30,850$

Technician wages $ $8,100$ $ $7,950$

Mobile lab operating expenses $ $4,700$ $ $32$ $ $8,380$

Office expenses $ $2,800$ $ $2$ $ $2,890$

Advertising expenses $ $1,590$ $ $1,660$

Insurance $ $2,890$ $ $2,890$

Miscellaneous expenses $ $940$ $ $2$ $ $485$

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $$4,700$ plus $$32$ per job, and the actual mobile lab operating expenses for February were $$8,380.$ The company expected to work $120$ jobs in February, but actually worked $124$ jobs.

Required:

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

Note: 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.