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 MonthVariable

Component per JobActual Total

for FebruaryRevenue$360$18,950Technician wages$6,400$6,450Mobile lab operating expenses$2,900$35$4,530Office expenses$2,600$2$3,050Advertising expenses$970$995Insurance$1,680$1,680Miscellaneous expenses$500$3$465

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.