Exercise 9-17 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 $ 360 Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses $ 6, 400 $ 2, 900 $ 2,600 $ 970 $ 1,680 $ 500 $ 35 $ 2 Actual Total for February $ 18,950 $ 6, 450 $ 4, 530 3,050 $ 995 1, 680 465 65 $ 69 69 3 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $2,900 plus $35 per job, and the actual mobile lab operating expenses for February were $4,530. The company expected to work 50 jobs in February, but actually worked 52 jobs. Required: Prepare a flexible budget performance report showing AirQual Test Corporation's 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 52 Planning Budget Jobs Revenue $ 18,950 Expenses 6,450 Technician wages Mobile lab operating expenses Office expenses 4,530 3,050 995 Advertising expenses Insurance 1,680 Miscellaneous expenses 465 Total expense 17,170 Net operating income $ 1,780