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 Fixed Component per Month Actual Results $ 8,200 $4,700 $ 2,500 $1,600 $ 2,890 $ 970 Variable Actual Total Component per Job for February $ 278 142 $ 34 $2 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 $9.300. The company expected to work 140 jobs in February, but actually worked 142 jobs. $1 Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and speriding 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 varience). Input all amounts as positive values.) $36,170 $ 8,050 $9,300 $ 2,630 $ 1,670 $ 2,090 $415 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Flexible Budget 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 Fixed Component per Month Actual Results $ 8,200 $4,700 $ 2,500 $1,600 $ 2,890 $ 970 Variable Actual Total Component per Job for February $ 278 142 $ 34 $2 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 $9.300. The company expected to work 140 jobs in February, but actually worked 142 jobs. $1 Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and speriding 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 varience). Input all amounts as positive values.) $36,170 $ 8,050 $9,300 $ 2,630 $ 1,670 $ 2,090 $415 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Flexible Budget Planning Budget
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:new Exam 3
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
Fixed Component
per Month
Actual
Results
$5,200
$4,700
$ 2,500
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 $9,300. The company expected to work 140 jobs in
February, but actually worked 142 jobs.
$1,600
$2,890
S 970
Required:
Prepare a flexible budget performance report showing Air Qual 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.)
142
Variable Actual Total
Component per Job for February
$278
$36,170
$ 34
$ 8,050
$9,300
$ 2,630
$ 1,670
$2,890
$
415
AirQual Test Corporation
Flexible Budget Performance Report
For the Month Ended February 28
Flexible
Budget
Planning
Budget
Transcribed Image Text: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 (i.e., zero variance). Input all amounts as positive values.)
Jobs
Revenue
Expenses
Technician wages
Mobilo lab operating
expenses
Office expenses
Advertising expenses
Insurance
Miscellaneous expenses
Total expense
Net operating income
Actual
Results
AirQual Test Corporation
Flexible Budget Performance Report
For the Month Ended February 28
Flexible
Budget
142
$ 30,170
8,050
9,300
2,630
1,670
2,890
415
24,955
$ 11,215
Planning
Budget
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