Exercise 9-16 (Algo) Flexible Budget Performance Report [LO9-1, LO9-2, LO9-3, LO9-4]

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				$	277		$	33,260
Technician wages	$	8,600					$	8,450
Mobile lab operating expenses	$	4,800		$	31		$	8,670
Office expenses	$	2,600		$	3		$	2,840
Advertising expenses	$	1,560					$	1,630
Insurance	$	2,860					$	2,860
Miscellaneous expenses	$	930		$	1		$	365

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,800 plus $31 per job, and the actual mobile lab operating expenses for February were $8,670. The company expected to work 130 jobs in February, but actually worked 136 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.)

AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Results Flexible Budget Planning Budget Jobs 136 Revenue $ 33,260 8,450 Expenses: Technician wages Mobile lab operating expenses Office expenses Advertising expenses 8,670 2,840 1,630 Insurance 2,860 Miscellaneous expenses 365 Total expense 24,815 Net operating income $ 8,445