Reference no: EM13962856

Refer to the data for The Exterminator Inc. in Exercise 9-6. In Exercise 9-6, 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 appears below:

A management intern has suggested that the budgeted revenues and costs should be adjusted for the actual level of activity in May before they are compared to the actual revenues and costs. Because the actual level of activity was 4% higher than budgeted, the intern suggested that all budgeted revenues and costs should be adjusted upward by 4%. A report comparing the budgeted revenues and costs, with this adjustment, 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 May? Why or why not?