Analyze a Performance Report The Exterminator Inc. provides on-site resid

    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?

                                                                                                                                      Order Now