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: Variable Fixed Component Component per Actual Total for February $ 27,720 $ 8,050 $ 8,370 $ 2,580 $ 1,640 $ 2,870 per Month Job Revenue $ 277 Technician wages Mobile lab operating expenses Office expenses Advertising expenses $ 8,200 $ 4,900 $ 2,400 $ 1,570 $ 2,870 $ $ 33 2$ Insurance Miscellaneous expenses 920 2$ 1 2$ 335 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $33 per job, and the actual mobile lab operating expenses for February were $8,370. The company expected to work 110 jobs in February, but actually worked 116 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 provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February: Variable Fixed Component Component per Actual Total for February $ 27,720 $ 8,050 $ 8,370 $ 2,580 $ 1,640 $ 2,870 per Month Job Revenue $ 277 Technician wages Mobile lab operating expenses Office expenses Advertising expenses $ 8,200 $ 4,900 $ 2,400 $ 1,570 $ 2,870 $ $ 33 2$ Insurance Miscellaneous expenses 920 2$ 1 2$ 335 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $33 per job, and the actual mobile lab operating expenses for February were $8,370. The company expected to work 110 jobs in February, but actually worked 116 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.)

Name: AirQual Test Corporation provides on-site air quality testing service
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Description: AirQual Test Corporation provides on-site air quality testing services. The company has provided the following costformulas and actual results for the month of February:VariableFixed Component Component perActual Totalper MonthJobfor February$ 27,72

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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