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				$	278		$	27,830
Technician wages	$	8,100					$	7,950
Mobile lab operating expenses	$	5,000		$	33		$	8,470
Office expenses	$	2,800		$	3		$	2,980
Advertising expenses	$	1,570					$	1,640
Insurance	$	2,880					$	2,880
Miscellaneous expenses	$	960		$	1		$	375

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $5,000 plus $33 per job, and the actual mobile lab operating expenses for February were $8,470. The company expected to work 110 jobs in February, but actually worked 112 jobs.

AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Flexible Results Budget Planning Budget Jobs 112 $ 27,830 7,950 8,470 Revenue Expenses: Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Total expense Net operating income 2,980 1,640 2,880 375 24,295 $ 3,535