flexible budget performance report 403760

AirAssurance Corporation provides on site air quality testing services. The company has provided the following data concerning its operations:

Fixed Variable Actual

Component Component Total for

per Month per job March

Revenue $275 $24,750

Technician wages $8,600 $8,450

Mobile lab operating expenses $4,900 $29 $7,960

Office expenses $2,700 $3 $2,850

Advertising expenses $1,580 $1,650

Insurance $2,870 $2,870

Miscellaneous expenses $960 $2 $465

The company uses the number of jobs as it measures of activity. For example, mobile lab operating expenses should be $4,900 plus

$29 per job, and the actual mobile lab operating expenses for March were $7,960.

The company expected to work 100 jobs in March, but actually worked 98 jobs.

Prepare a flexible budget performance report showing AirAssurance Corporation’s activity variances and revenue and spending variances for March.

Explain each answer