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		$	38,950
Technician wages	$	8,000					$	7,850
Mobile lab operating expenses	$	4,800		$	34		$	9,740
Office expenses	$	2,700		$	2		$	2,850
Advertising expenses	$	1,590					$	1,660
Insurance	$	2,900					$	2,900
Miscellaneous expenses	$	940		$	1		$	395

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,800 plus $34 per job, and the actual mobile lab operating expenses for February were $9,740. The company expected to work 150 jobs in February, but actually worked 156 jobs.

Required:

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

AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Flexible Results Budget 156 Planning Budget Jobs Revenue $ 38,950 Expenses: 7,850 Technician wages Mobile lab operating expenses Office expenses 9,740 2,850 Advertising expenses 1,660 Insurance 2,900 Miscellaneous expenses 395 Total expense 25,395 Net operating income $ 13,555