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Air Qual Test Corporation provides on-site air quality testing services. The company provided the following cost formulas and actual results for the month of February: Revenue Technician wages Mobile lab operating expenses office expenses Advertising expenses Insurance Miscellaneous expenses Jobs Revenue Expenses: Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Fixed Variable Component Component per Actual Total per Month for February $ 30,730 $ 7,850 $2 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,800 plus $34 per job, and the actual mobile lab operating expenses for February were $8,720. The company expected to work 120 jobs in February but actually worked 128 jobs. Miscellaneous expenses Required: Prepare a flexible budget performance report for February. Note: 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. Total expenses Net operating income $ 8,000 $ 4,800 $ 2,300 $ 1,560 $ 2,880 $ 970 Actual Results $ Job $ 279 128 $ 30,730 $ 34 $4 $ 8,720 $ 2,630 $ 1,630 $ 2,880 $ 515 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 7,850 8,720 2,630 1,630 2,880 515 24,225 6,505 Revenue and Flexible Spending Variances Budget Activity Variances Planning Budget

Air Qual Test Corporation provides on-site air quality testing services. The company provided the following cost formulas and actual results for the month of February: Revenue Technician wages Mobile lab operating expenses office expenses Advertising expenses Insurance Miscellaneous expenses Jobs Revenue Expenses: Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Fixed Variable Component Component per Actual Total per Month for February $ 30,730 $ 7,850 $2 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,800 plus $34 per job, and the actual mobile lab operating expenses for February were $8,720. The company expected to work 120 jobs in February but actually worked 128 jobs. Miscellaneous expenses Required: Prepare a flexible budget performance report for February. Note: 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. Total expenses Net operating income $ 8,000 $ 4,800 $ 2,300 $ 1,560 $ 2,880 $ 970 Actual Results $ Job $ 279 128 $ 30,730 $ 34 $4 $ 8,720 $ 2,630 $ 1,630 $ 2,880 $ 515 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 7,850 8,720 2,630 1,630 2,880 515 24,225 6,505 Revenue and Flexible Spending Variances Budget Activity Variances Planning Budget

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 3CMA: Kimbeth Manufacturing uses a process cost system to manufacture dust density sensors for the mining...
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AirQual Test Corporation provides on-site air quality testing services. The company provided the following cost formulas and actual results for the month of February: Revenue Technician wages Mobile lab operating expenses office expenses Advertising expenses Insurance Miscellaneous expenses Jobs Revenue Expenses: Technician wages Mobile lab operating expenses Office expenses Fixed Variable Component Component per Actual Total per Month Job for February $ 279 $ 30,730 Advertising expenses Insurance $ 8,000 $ 4,800 $ 2,300 $ 1,560 $ 2,880 $970 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,800 plus $34 per job, and the actual mobile lab operating expenses for February were $8,720. The company expected to work 120 jobs in February but actually worked 128 jobs. Miscellaneous expenses Total expenses Net operating income Required: Prepare a flexible budget performance report for February. Note: 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. Actual Results $34 $4 128 $ 30,730 $2 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 7,850 8,720 2,630 1,630 2,880 515 $ 7,850 $ 8,720 $ 2,630 $ 1,630 $ 2,880 $ 515 24,225 $ 6,505 Revenue and Flexible Spending Variances Budget Activity Variances Planning Budget
Transcribed Image Text:AirQual Test Corporation provides on-site air quality testing services. The company provided the following cost formulas and actual results for the month of February: Revenue Technician wages Mobile lab operating expenses office expenses Advertising expenses Insurance Miscellaneous expenses Jobs Revenue Expenses: Technician wages Mobile lab operating expenses Office expenses Fixed Variable Component Component per Actual Total per Month Job for February $ 279 $ 30,730 Advertising expenses Insurance $ 8,000 $ 4,800 $ 2,300 $ 1,560 $ 2,880 $970 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,800 plus $34 per job, and the actual mobile lab operating expenses for February were $8,720. The company expected to work 120 jobs in February but actually worked 128 jobs. Miscellaneous expenses Total expenses Net operating income Required: Prepare a flexible budget performance report for February. Note: 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. Actual Results $34 $4 128 $ 30,730 $2 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 7,850 8,720 2,630 1,630 2,880 515 $ 7,850 $ 8,720 $ 2,630 $ 1,630 $ 2,880 $ 515 24,225 $ 6,505 Revenue and Flexible Spending Variances Budget Activity Variances Planning Budget
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