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 Variable Component per Month Revenue per Job $ 277 Actual Total for February $ 38,800 Technician wages $ 8,500 $ 8,350 Mobile lab operating expenses $ 4,600 $ 31 $ 9,090 Office expenses $ 2,200 $ 4 $ 2,650 Advertising expenses $ 1,620 $ 1,690 Insurance $ 2,880 Miscellaneous expenses $ 960 $ 2 $ 2,880 $ 565 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 $9,090. The company expected to work 150 jobs in February but actually worked 160 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 Revenue and Flexible Activity Variances Results Spending Variances Budget Planning Budget 160 160 150 $ 38,800 $ 44,320 Revenue Expenses: Technician wages 8,350 Mobile lab operating expenses 9,090 9,560 Office expenses 2,650 2,840 Advertising expenses 1,690 1,620 Insurance 2,880 2,880 565 1,280 Miscellaneous expenses Total expenses Net operating income 25,225 $ 13,575
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 Variable Component per Month Revenue per Job $ 277 Actual Total for February $ 38,800 Technician wages $ 8,500 $ 8,350 Mobile lab operating expenses $ 4,600 $ 31 $ 9,090 Office expenses $ 2,200 $ 4 $ 2,650 Advertising expenses $ 1,620 $ 1,690 Insurance $ 2,880 Miscellaneous expenses $ 960 $ 2 $ 2,880 $ 565 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 $9,090. The company expected to work 150 jobs in February but actually worked 160 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 Revenue and Flexible Activity Variances Results Spending Variances Budget Planning Budget 160 160 150 $ 38,800 $ 44,320 Revenue Expenses: Technician wages 8,350 Mobile lab operating expenses 9,090 9,560 Office expenses 2,650 2,840 Advertising expenses 1,690 1,620 Insurance 2,880 2,880 565 1,280 Miscellaneous expenses Total expenses Net operating income 25,225 $ 13,575
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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
Variable
Component
per Month
Revenue
per Job
$ 277
Actual
Total for
February
$ 38,800
Technician wages
$ 8,500
$ 8,350
Mobile lab operating expenses
$ 4,600
$ 31
$ 9,090
Office expenses
$ 2,200
$ 4
$ 2,650
Advertising expenses
$ 1,620
$ 1,690
Insurance
$ 2,880
Miscellaneous expenses
$ 960
$ 2
$ 2,880
$ 565
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 $9,090. The company expected to work 150 jobs in
February but actually worked 160 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
Revenue and
Flexible
Activity Variances
Results
Spending Variances
Budget
Planning
Budget
160
160
150
$ 38,800
$
44,320
Revenue
Expenses:
Technician wages
8,350
Mobile lab operating expenses
9,090
9,560
Office expenses
2,650
2,840
Advertising expenses
1,690
1,620
Insurance
2,880
2,880
565
1,280
Miscellaneous expenses
Total expenses
Net operating income
25,225
$ 13,575
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