Analyze a Performance Report

The Exterminator Inc. provides on-site residential pest extermination services. The company has several mobile teams who are dispatched from a central
location in company-owned trucks. The company uses the number of jobs to measure activity. At the beginning of May the company budgeted for 200 jobs but
the actual number of jobs turned out to be 208. A report comparing the budgeted revenues and costs to the actual revenues and costs appear below:

The Exterminator inc

Variance Report for the month ended May 31

Planning budget

Actual Results

Variances

Jobs

200

208

Revenue

$3700

$36400

$600 U

Expenses:

Mobile team operating costs

16900

17060

160 U

Exterminating supplies

4000

4350

350 U

Advertising

900

1040

140 U

Dispatching costs

2700

2340

360 U

Office Rent

2300

2300

0

Insurance

3600

3600

0

Total Expense

30400

30690

290 U

Net Operating Income

$6600

$5710

$890 U

Required:

Is the above variance report useful for evaluating how well revenues and costs were controlled during May? Why or why not?