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 Fixed Component per Month $ 8,400 $ 4,600 $ 2,700 $ 1,600 $ 2,860 $ 930 Variable Component per Job $ 279 $ 31 $4 Actual Total for February $ 30,730 $ 8,250 $ 8,160 $ 3,030 $ 1,670 $ 2,860 $ 475 $ 2 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $31 per job, and the actual mobile lab operating expenses for February were $8,160. The company expected to work 120 jobs in February, but actually worked 128 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: Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Fixed Component per Month $ 8,400 $ 4,600 $ 2,700 $ 1,600 $ 2,860 $ 930 Variable Component per Job $ 279 $ 31 $4 Actual Total for February $ 30,730 $ 8,250 $ 8,160 $ 3,030 $ 1,670 $ 2,860 $ 475 $ 2 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $31 per job, and the actual mobile lab operating expenses for February were $8,160. The company expected to work 120 jobs in February, but actually worked 128 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
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.
Topic Video
Question
Please do not give solution in image format thanku
![Exercise 9-16 (Algo) Flexible Budget Performance Report [LO9-1, LO9-2, LO9-3, LO9-4]
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
Fixed
Component
per Month
$ 8,400
$ 4,600
$ 2,700
$ 1,600
$ 2,860
$ 930
Variable
Component
per Job
$ 279
$ 31
$ 4
$ 2
Actual
Total for
February
$ 30,730
$ 8,250
$ 8,160
$ 3,030
$ 1,670
$ 2,860
$ 475
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus
$31 per job, and the actual mobile lab operating expenses for February were $8,160. The company expected to work 120 jobs in
February, but actually worked 128 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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F84fefd46-9e74-4d61-9ac5-d103349d245d%2F970adf9d-1532-4949-86d0-dce9b66ba483%2Faiij9u_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 9-16 (Algo) Flexible Budget Performance Report [LO9-1, LO9-2, LO9-3, LO9-4]
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
Fixed
Component
per Month
$ 8,400
$ 4,600
$ 2,700
$ 1,600
$ 2,860
$ 930
Variable
Component
per Job
$ 279
$ 31
$ 4
$ 2
Actual
Total for
February
$ 30,730
$ 8,250
$ 8,160
$ 3,030
$ 1,670
$ 2,860
$ 475
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus
$31 per job, and the actual mobile lab operating expenses for February were $8,160. The company expected to work 120 jobs in
February, but actually worked 128 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.)
Transcribed Image Text:Miscellaneous expenses
Jobs
Revenue
Expenses:
Technician wages
Mobile lab operating expenses
Office expenses
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus
$31 per job, and the actual mobile lab operating expenses for February were $8,160. The company expected to work 120 jobs in
February, but actually worked 128 jobs.
Advertising expenses
Insurance
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.)
Miscellaneous expenses
ş
Total expense
Net operating income
93U
Actual
Results
$
2
128
$ 30,730
→ 4/5
AirQual Test Corporation
Flexible Budget Performance Report
For the Month Ended February 28
8,250
8,160
3,030
1,670
2,860
475
24,445
6,285
Flexible
Budget
Planning
Budget
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education