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:

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus $34 per job, and the actual mobile lab operating expenses for February were $8,620. The company expected to work 120 jobs in February, but actually worked 128 jobs.

Required:

Prepare a flexible budget performance report showing AirQual Test Corporations 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.)

Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Variable Fixed Component Component per per Month Job $ 278 $ 8,400 $ 4,700 $ 34 $ 2,800 $ 3 $ 1,550 $ 2,890 $ 930 2 Actual Total for February $ 30,610 $ 8,250 $ 8,620 $ 3,010 $ 1,620 $ 2,890 475 $ AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Flexible Results Budget 128 Planning Budget Jobs Revenue $ 30,610 8,250 Expenses: Technician wages Mobile lab operating expenses Office expenses 8,620 3,010 Advertising expenses 1,620 Insurance 2,890 Miscellaneous expenses 475 Total expense 24,865 Net operating income $ 5,745