EXERCISE 10-7 Critique a Variance Report LO 10-6 Refer to the data for The Terminator Inc. in Exercise 10-6. A management intern has suggested that the budgeted revenues and costs should be adjusted for the actual level of activity in April before they are compared to the actual revenues and costs. Because the actual level of activity was 5% higher than budgeted, the intern suggested that all budgeted revenues and costs should be adjusted upward by 5%. A report comparing the budgeted revenues and costs, with this adjustment, to the actual revenues and costs appears below The Terminator Inc. Variance Report For the Month Ended April 30 Actual dted Planning Results 105 $20,520 Budget 105 $20,475 Variances $ 45 F Expenses: 10,320 960 800 2,340 1,800 2,100 18,320 10,500 1,890 840 2,310 1,890 2,205 19,635 $ 840 180 F 930 F 40 F 30 U 90 F 105 F 1,315 F $1,360 F Mobile team operating costs . Advertising Net operating income ..._. . . $ 2,200 Required: Is the above variance report useful for evaluating how well revenues and costs were controlled during April? Why, or why not