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 Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Jobs Revenue Expenses Technician wages Moble lab operating expenses The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4.700 plus $34 per job, and the actual mobille lab operating expenses for February were $8,960. The company expected to work 130 jobs in February, but actually worked 134 Jobs. Office expenses 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 (.e., zero variance). Input all amounts as positive values.) Advertising expenses Insurance Miscellaneous expenses Total expense Net operating income Actual Results Fixed Component per Month 134 $ 8,100 $4,700 $ 2,300 $1,570 $2,890 950 $ $ 33.520 Variable Actual Total Component per Job for February $ 279 7,950 8.900 2.870 1.840 2,800 515 24.625 $8,895 $34 $4 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Flexible Budget $33,520 $7,950 $ 8,960 $ 2,670 $ 1,640 $ 2,890 S 515 Planning Budget
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 Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Jobs Revenue Expenses Technician wages Moble lab operating expenses The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4.700 plus $34 per job, and the actual mobille lab operating expenses for February were $8,960. The company expected to work 130 jobs in February, but actually worked 134 Jobs. Office expenses 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 (.e., zero variance). Input all amounts as positive values.) Advertising expenses Insurance Miscellaneous expenses Total expense Net operating income Actual Results Fixed Component per Month 134 $ 8,100 $4,700 $ 2,300 $1,570 $2,890 950 $ $ 33.520 Variable Actual Total Component per Job for February $ 279 7,950 8.900 2.870 1.840 2,800 515 24.625 $8,895 $34 $4 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Flexible Budget $33,520 $7,950 $ 8,960 $ 2,670 $ 1,640 $ 2,890 S 515 Planning Budget
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
Revenue
Technician wages
Mobile lab operating expenses
Office expenses
Advertising expenses
Insurance
Miscellaneous expenses
Jobs
Revenue
Expenses
Technician wages
Moble lab operating
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus
$34 per job, and the actual mobile lab operating expenses for February were $8,960. The company expected to work 130 jobs in
February, but actually worked 134 jobs.
expenses
Required:
Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending varlances and activity
variances for February (Indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and "None" for no
effect (.e., zero variance). Input all amounts as positive values.)
Office expenses
Advertising expenses
Insurance
Miscellaneous expenses
Total expense
Net operating income
Actual
Results
134
Fixed Component
per Month
$ 33.520
$ 8,100
$4,700
$ 2,300
$1,570
$2,890
S 950
7,950
8.900
2.870
1.840
2.800
Variable
Actual Total
Component per Job for February
$ 279
AirQual Test Corporation
Flexible Budget Performance Report
For the Month Ended February 28
Flexible
Budget
515
24.625
$ 0,895
$34
$4
$33,520
$ 7,958
$ 8,960
$ 2,670
$ 1,640
$ 2,890
S 515
Planning
Budget
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