Terminator 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 April, the company budgeted for 100 jobs, but the actual number of jobs turned out to be 105. A report comparing the budgeted revenues and costs to the actual revenues and costs appears below:

Required:

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

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The Terminator Inc. Variance Report For the Month Ended April 30 Planning Budget Actual Results Variances Jobs 100 105 S 19,500 S 20,520 $ 1,020 F Revenue Expenses: Mobile team operating costs 10,000 10,320 320 1,800 Exterminating supplies 960 840 F 800 Advertising 800 140 U Dispatching costs 2,200 2,340 Office rent 1,800 1,800 2,100 Insurance 2,100 Total expense 18,700 18320 380 F $ 2,200 $ 800 $ 1400 F Net operating income