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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 Jobs Revenue Expenses: Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Total expense Net operating income The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus $32 per job, and the actual mobile lab operating expenses for February were $9,340. The company expected to work 150 jobs in February, but actually worked 158 jobs. Actual Results 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.) Fixed Component per Month 158 $ 8,100 $ 4,700 $ 2,700 $ 1,550 $2,890 930 $ $ 38,500 Variable. Component per Job $275 7,950 9,340 3,000 1,620 2,890 385 25,185 $ 13,315 $32 3 $ $1 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Flexible Budget Actual Total for February $ 38,500 $ 7,950 $ 9,348 $3,000 $ 1,620 $ 2,890 $ 385 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 Revenue Expenses: Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Total expense Net operating income The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus $32 per job, and the actual mobile lab operating expenses for February were $9,340. The company expected to work 150 jobs in February, but actually worked 158 jobs. Actual Results 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.) Fixed Component per Month 158 $ 8,100 $ 4,700 $ 2,700 $ 1,550 $2,890 930 $ $ 38,500 Variable. Component per Job $275 7,950 9,340 3,000 1,620 2,890 385 25,185 $ 13,315 $32 3 $ $1 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Flexible Budget Actual Total for February $ 38,500 $ 7,950 $ 9,348 $3,000 $ 1,620 $ 2,890 $ 385 Planning Budget

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 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 $4,700 plus $32 per job, and the actual mobile lab operating expenses for February were $9,340. The company expected to work 150 jobs in February, but actually worked 158 jobs. Advertising expenses Insurance Miscellaneous expenses 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.) Total expense Net operating income Actual Results Fixed Component per Month 158 $ 8,100 $ 4,700 $ 2,700 $ 1,550 $ 2,890 $ 930 $ 38,500 Variable Actual Total Component per Job for February $275 $ 38,500 $ 7,950 $ 9,340 $ 3,000 $ 1,620 $ 2,890 $ 385 7,950 9,340 3,000 1,620 2,890 385 25,185 $ 13,315 $32 $ 3 $ 1 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Flexible Budget Planning Budget ہے
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 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 $4,700 plus $32 per job, and the actual mobile lab operating expenses for February were $9,340. The company expected to work 150 jobs in February, but actually worked 158 jobs. Advertising expenses Insurance Miscellaneous expenses 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.) Total expense Net operating income Actual Results Fixed Component per Month 158 $ 8,100 $ 4,700 $ 2,700 $ 1,550 $ 2,890 $ 930 $ 38,500 Variable Actual Total Component per Job for February $275 $ 38,500 $ 7,950 $ 9,340 $ 3,000 $ 1,620 $ 2,890 $ 385 7,950 9,340 3,000 1,620 2,890 385 25,185 $ 13,315 $32 $ 3 $ 1 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Flexible Budget Planning Budget ہے
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