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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 $ 8,300 $ 4,900 $ 2,600 $ 1,570 $ 2,900 $ 940 Variable Component per Job $ 280 $ 33 $2 Actual Total for February $ 30,850 $ 8,150 $8,700 $ 2,690 $ 1,640 $ 2,900 $ 485 $2 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 $8,700. 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 varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.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 $ 8,300 $ 4,900 $ 2,600 $ 1,570 $ 2,900 $ 940 Variable Component per Job $ 280 $ 33 $2 Actual Total for February $ 30,850 $ 8,150 $8,700 $ 2,690 $ 1,640 $ 2,900 $ 485 $2 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 $8,700. 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 varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 Jobs Revenue Expenses $ 8,300 $ 4,900 $ 2,600 $ 1,570 $ 2,900 $ 940 Technician wages Mobile lab operating expenses 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 $8,700. The company expected to work 120 jobs in February, but actually worked 128 jobs. Variable Component per Job $ 280 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 (l.e., zero variance). Input all amounts as positive values.) Actual Results $ 33 $2 128 $ 30,850 $2 8,150 8,700 Actual Total for February $ 30,850 $ 8,150 $ 8,700 $ 2,690 $ 1,640 $ 2,900 $ 485 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Flexible Budget Planning Budget
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 Fixed Component per Month Jobs Revenue Expenses $ 8,300 $ 4,900 $ 2,600 $ 1,570 $ 2,900 $ 940 Technician wages Mobile lab operating expenses 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 $8,700. The company expected to work 120 jobs in February, but actually worked 128 jobs. Variable Component per Job $ 280 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 (l.e., zero variance). Input all amounts as positive values.) Actual Results $ 33 $2 128 $ 30,850 $2 8,150 8,700 Actual Total for February $ 30,850 $ 8,150 $ 8,700 $ 2,690 $ 1,640 $ 2,900 $ 485 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Flexible Budget Planning Budget
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 varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values.) Jobs Revenue Expenses: Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Total expense Net operating income AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Results 128 $ 30,850 8.150 8,700 2,690 1,640 2,900 485 24,565 $ 6,285 Flexible Budget Planning Budget
Transcribed Image Text: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 varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values.) Jobs Revenue Expenses: Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Total expense Net operating income AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Results 128 $ 30,850 8.150 8,700 2,690 1,640 2,900 485 24,565 $ 6,285 Flexible Budget Planning Budget
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