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. Fixed Component per Month Revenue Variable Component per Job $ 277 Actual Total for February $ 30,490 Technician wages $ 8,000 $ 7,850 Mobile lab operating expenses $ 4,700 $ 35 $ 8,740 Office expenses $ 2,300 $ 3 $ 2,510 Advertising expenses $ 1,590 $ 1,660 Insurance Miscellaneous expenses $ 2,890 $ $ 2,890 970 $ 2 $ 515 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus $35 per job, and the actual mobile lab operating expenses for February were $8,740. The company expected to work 120 jobs in February, but actually worked 124 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 Flexible Budget Performance Report For the Month Ended February 28 Jobs Revenue Expenses: Technician wages Actual Results 124 $ 30,490 7,850 Flexible Planning Budget 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. Fixed Component per Month Revenue Variable Component per Job $ 277 Actual Total for February $ 30,490 Technician wages $ 8,000 $ 7,850 Mobile lab operating expenses $ 4,700 $ 35 $ 8,740 Office expenses $ 2,300 $ 3 $ 2,510 Advertising expenses $ 1,590 $ 1,660 Insurance Miscellaneous expenses $ 2,890 $ $ 2,890 970 $ 2 $ 515 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus $35 per job, and the actual mobile lab operating expenses for February were $8,740. The company expected to work 120 jobs in February, but actually worked 124 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 Flexible Budget Performance Report For the Month Ended February 28 Jobs Revenue Expenses: Technician wages Actual Results 124 $ 30,490 7,850 Flexible Planning Budget 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.
Fixed Component
per Month
Revenue
Variable
Component per Job
$ 277
Actual Total
for February
$ 30,490
Technician wages
$ 8,000
$ 7,850
Mobile lab operating expenses
$ 4,700
$ 35
$ 8,740
Office expenses
$ 2,300
$ 3
$ 2,510
Advertising expenses
$ 1,590
$ 1,660
Insurance
Miscellaneous expenses
$ 2,890
$
$ 2,890
970
$ 2
$
515
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus
$35 per job, and the actual mobile lab operating expenses for February were $8,740. The company expected to work 120 jobs in
February, but actually worked 124 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
Flexible Budget Performance Report
For the Month Ended February 28
Jobs
Revenue
Expenses:
Technician wages
Actual
Results
124
$ 30,490
7,850
Flexible
Planning
Budget
Budget
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