Acc505 Managerial Accounting: E9-6 The Exterminator Inc. provides on-site residential pest

Acc505 Managerial Accounting

EXERCISE 9–6 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 $3,700 $36,400 $600 U
Mobile team operating costs 16,900 17,060 160 U
Exterminating supplies 4,000 4,350 350 U
Advertising 900 1,040 140 U
Dispatching costs 2,700 2,340 360 U
Office Rent 2,300 2,300 0
Insurance 3,600 3,600 0
Total Expense 30,400 30,690 290 U
Net Operating Income $6,600 $5,710 $890 U

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