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 Revenue Variable Actual Total Component per Job for February $278 $ 30,610 Technician wages $ 8,300 $ 8,150 Mobile lab operating expenses $ 4,600 $ 30 $ 8,040 Office expenses $ 2,700 $ 3 $ 2,910 Advertising expenses $ 1,580 $1,650 Insurance $ 2,890 $ 2,890 Miscellaneous expenses $ 950 $ 1 $ 375 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $30 per job, and the actual mobile lab operating expenses for February were $8,040. The company expected to work 120 jobs in February, but actually worked 126 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 Jobs Actual Results 126 Revenue $ 30,610 Expenses Technician wages 8,150 Mobile lab operating 8,040 expenses Office expenses 2,910 Flexible Planning Budget Budget 126
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 Revenue Variable Actual Total Component per Job for February $278 $ 30,610 Technician wages $ 8,300 $ 8,150 Mobile lab operating expenses $ 4,600 $ 30 $ 8,040 Office expenses $ 2,700 $ 3 $ 2,910 Advertising expenses $ 1,580 $1,650 Insurance $ 2,890 $ 2,890 Miscellaneous expenses $ 950 $ 1 $ 375 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $30 per job, and the actual mobile lab operating expenses for February were $8,040. The company expected to work 120 jobs in February, but actually worked 126 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 Jobs Actual Results 126 Revenue $ 30,610 Expenses Technician wages 8,150 Mobile lab operating 8,040 expenses Office expenses 2,910 Flexible Planning Budget Budget 126
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
Revenue
Variable
Actual Total
Component per Job for February
$278
$ 30,610
Technician wages
$ 8,300
$ 8,150
Mobile lab operating expenses
$ 4,600
$ 30
$ 8,040
Office expenses
$ 2,700
$ 3
$ 2,910
Advertising expenses
$ 1,580
$1,650
Insurance
$ 2,890
$ 2,890
Miscellaneous expenses
$
950
$
1
$ 375
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus
$30 per job, and the actual mobile lab operating expenses for February were $8,040. The company expected to work 120 jobs in
February, but actually worked 126 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
Jobs
Actual
Results
126
Revenue
$ 30,610
Expenses
Technician wages
8,150
Mobile lab operating
8,040
expenses
Office expenses
2,910
Flexible
Planning
Budget
Budget
126
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