Corporation provides on-site air quality testing services. The company provided the following cost formulas and actual results for the month of February.

Prepare a flexible budget performance report for February.

Fixed component per month Variable component per job actual total for February

Revenue $275 $35,750

Technician wage $8,200 $8050

Mobile lab expenses $4,800 $30 $8,840

Office expenses $2,500 $3 $2,770

Advertising expenses $1,600 $1,670

Insurance $2,890 $2,890

Miscellaneous expenses $960 $2 $545

The company uses the number of jobs as its measures of activity. For example, mobile lab operating expenses should be $4800 plus $30 per job, and the actual mobile lab operating expenses for February were $8,840. The company expected to work 140 jobs in February but actually worked 146 jobs.

Prepare a flexible budget performance report for February.

Corporation

Flexible budget performance report

For the month of ended February 28

Actual results

Revenue and

Spending Variances

Flexible Budget

Activity Variances

Planning Budget

Jobs

146

Revenue

$35,750

Expenses:

Technician

wages

8050

Mobile lab

operating

expenses

8840

Office

expenses

2770

Advertising

expenses

1670

Insurance

2890

Miscellaneous expenses

545

Total expenses

24,765

Net operating Income

$10,985