AirQual Test Corporation provides on-site air quality testing services. The company provided the following cost formulas and actual results for the month of February: Fixed Component per Month Variable Component per Job Revenue $ 280 Actual Total for February $ 30,850 Technician wages $ 8,500 $ 8,350 Mobile lab operating expenses $ 4,700 $ 32 $ 8,380 Office expenses $ 2,700 $ 2 $ 2,790 Advertising expenses $ 1,620 $ 1,690 Insurance $ 2,880 Miscellaneous expenses $ 920 $ 1 $ 2,880 $ 345 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 $8,380. The company expected to work 120 jobs in February but actually worked 126 jobs. Required: Prepare a flexible budget performance report for February. Note: 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. Jobs AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Flexible Planning Results Budget Budget 126 $ 30,850 Revenue Expenses: Technician wages 8,350 Mobile lab operating expenses 8,380 Office expenses 2,790 Advertising expenses 1,690 Insurance 2,880 Miscellaneous expenses Total expenses Net operating income $ 6,415 345 24,435

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AirQual Test Corporation provides on-site air quality testing services. The company provided the following cost formulas and actual
results for the month of February:
Fixed
Component
per Month
Variable
Component
Revenue
per Job
$ 280
Actual
Total for
February
$ 30,850
Technician wages
$ 8,500
$ 8,350
Mobile lab operating expenses
$ 4,700
$ 32
$ 8,380
Office expenses
$ 2,700
$ 2
$ 2,790
Advertising expenses
$ 1,620
$ 1,690
Insurance
$ 2,880
Miscellaneous expenses
$ 920
$ 1
$ 2,880
$ 345
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 $8,380. The company expected to work 120 jobs in
February but actually worked 126 jobs.
Required:
Prepare a flexible budget performance report for February.
Note: 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
Actual
Results
126
$ 30,850
Revenue
Expenses:
Technician wages
8,350
Mobile lab operating expenses
8,380
Office expenses
2,790
Advertising expenses
1,690
Insurance
2,880
Miscellaneous expenses
Total expenses
Net operating income
345
24,435
$ 6,415
Flexible
Planning
Budget
Budget
Transcribed Image Text:AirQual Test Corporation provides on-site air quality testing services. The company provided the following cost formulas and actual results for the month of February: Fixed Component per Month Variable Component Revenue per Job $ 280 Actual Total for February $ 30,850 Technician wages $ 8,500 $ 8,350 Mobile lab operating expenses $ 4,700 $ 32 $ 8,380 Office expenses $ 2,700 $ 2 $ 2,790 Advertising expenses $ 1,620 $ 1,690 Insurance $ 2,880 Miscellaneous expenses $ 920 $ 1 $ 2,880 $ 345 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 $8,380. The company expected to work 120 jobs in February but actually worked 126 jobs. Required: Prepare a flexible budget performance report for February. Note: 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 Actual Results 126 $ 30,850 Revenue Expenses: Technician wages 8,350 Mobile lab operating expenses 8,380 Office expenses 2,790 Advertising expenses 1,690 Insurance 2,880 Miscellaneous expenses Total expenses Net operating income 345 24,435 $ 6,415 Flexible Planning Budget Budget
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