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: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 $8,780. The company expected to work 140 jobs in February, but actually worked 146 jobs.Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February. **AirQual Test Corporation****Flexible Budget Performance Report** *For the Month Ended February 28*| | Actual Results | Flexible Budget | Planning Budget ||-------------------|----------------|-----------------|-----------------|| **Jobs** | 146 | 146 | 140 || **Revenue** | $36,310 | U | F$39,060 || **Expenses:** | | | || Technician wages | 8,250 | 150F | 8,4000None || Mobile lab operating expenses | 8,780 | F | U || Office expenses | 2,710 | F | || Advertising expenses | 1,670 | 70U | 0None || Insurance | 2,860 | 0None | || Miscellaneous expenses | 555 | F | || **Total expense** | 24,825 | F | U || **Net operating income** | 11,485 | U | F |**Explanation:**- **Jobs:** The company completed 146 jobs, which is consistent with the flexible budget but exceeds the planning budget of 140 jobs. - **Revenue:** Actual revenue is $36,310, underperforming (U) against the flexible budget. The planning budget revenue was set at $39,060, indicating a favorable (F) variance. - **Expenses:** Various expense categories are compared: - *Technician wages:* Actual wages are $8,250, showing a $150 favorable variance compared to $8,400 in the flexible budget. - *Mobile lab operating expenses:* These are higher than anticipated, resulting in a favorable variance for the flexible budget. - *Office expenses:* Actual office expenses show a favorable variance. - *Advertising expenses:* Actual advertising expenses are $1,670, with a $70 unfavorable variance against the flexible budget. There is no variance against the planning budget. - *Insurance and Miscellaneous expenses:* No significant variance is noted for insurance, while miscellaneous expenses show a favorable variance.- **Total Expense:** The total expense shows a favorable performance under the flexible budget but unfavorable compared to the planning budget.- **Net The table provides the breakdown of financial data categorizing expenses and revenues into fixed and variable components. It is structured across three columns: Fixed Component per Month, Variable Component per Job, and Actual Total for February.- **Revenue**: - Variable Component per Job: $279 - Actual Total for February: $36,310- **Technician Wages**: - Fixed Component per Month: $8,400 - Actual Total for February: $8,250- **Mobile Lab Operating Expenses**: - Fixed Component per Month: $4,600 - Variable Component per Job: $31 - Actual Total for February: $8,780- **Office Expenses**: - Fixed Component per Month: $2,300 - Variable Component per Job: $4 - Actual Total for February: $2,710- **Advertising Expenses**: - Fixed Component per Month: $1,600 - Actual Total for February: $1,670- **Insurance**: - Fixed Component per Month: $2,860 - Actual Total for February: $2,860- **Miscellaneous Expenses**: - Fixed Component per Month: $970 - Variable Component per Job: $2 - Actual Total for February: $555This table effectively outlines the relationship between constant monthly expenses and job-specific costs, providing insights into financial planning and budget allocation for February.

Name: AirQual Test Corporation provides on-site air quality testing services
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: 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:The company uses the number of jobs as its measure of activity. For example, mob