1 AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February: Fixed Component per Month Variable Component Revenue ts per Job $ 360 Actual Total for February $ 18,950 Technician wages $ 6,400 $ 6,450 Mobile lab operating expenses $ 2,900 $ 35 $ 4,530 Office expenses $ 2,600 $ 2 $ 3,050 Advertising expenses Insurance $ 970 $ 1,680 $ 995 $ 1,680 eBook Miscellaneous expenses $ 500 $ 3 $ 465 Ask eferences The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $2,900 plus $35 per job, and the actual mobile lab operating expenses for February were $4,530. The company expected to work 50 jobs in February, but actually worked 52 jobs. Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 C Jobs Revenue Expenses: Actual Results 52 $ 18,950 Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Total nunonen 6,450 4,530 3,050 995 1,680 465 47 470 Flexible Budget Planning Budget www
1 AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February: Fixed Component per Month Variable Component Revenue ts per Job $ 360 Actual Total for February $ 18,950 Technician wages $ 6,400 $ 6,450 Mobile lab operating expenses $ 2,900 $ 35 $ 4,530 Office expenses $ 2,600 $ 2 $ 3,050 Advertising expenses Insurance $ 970 $ 1,680 $ 995 $ 1,680 eBook Miscellaneous expenses $ 500 $ 3 $ 465 Ask eferences The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $2,900 plus $35 per job, and the actual mobile lab operating expenses for February were $4,530. The company expected to work 50 jobs in February, but actually worked 52 jobs. Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 C Jobs Revenue Expenses: Actual Results 52 $ 18,950 Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Total nunonen 6,450 4,530 3,050 995 1,680 465 47 470 Flexible Budget Planning Budget www
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and
actual results for the month of February:
Fixed
Component
per Month
Variable
Component
Revenue
ts
per Job
$ 360
Actual
Total for
February
$ 18,950
Technician wages
$ 6,400
$ 6,450
Mobile lab operating expenses
$ 2,900
$ 35
$ 4,530
Office expenses
$ 2,600
$ 2
$ 3,050
Advertising expenses
Insurance
$ 970
$ 1,680
$ 995
$ 1,680
eBook
Miscellaneous expenses
$ 500
$ 3
$ 465
Ask
eferences
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $2,900 plus
$35 per job, and the actual mobile lab operating expenses for February were $4,530. The company expected to work 50 jobs in
February, but actually worked 52 jobs.
Required:
Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity
variances for February. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no
effect (i.e., zero variance). Input all amounts as positive values.)
AirQual Test Corporation
Flexible Budget Performance Report
For the Month Ended February 28
C
Jobs
Revenue
Expenses:
Actual Results
52
$
18,950
Technician wages
Mobile lab operating expenses
Office expenses
Advertising expenses
Insurance
Miscellaneous expenses
Total nunonen
6,450
4,530
3,050
995
1,680
465
47 470
Flexible
Budget
Planning
Budget
www
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