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: Actual Total for February Fixed Component Variable Component per Month per Job Revenue $ 276 $ 35,890 Technician wages $ 8,300 $ 8,150 Mobile lab operating expenses $ 4,700 $ 32 $ 9,020 Office expenses $ 2,300 $ 4 $ 2,710 Advertising expenses $ 1,610 $ 1,680 Insurance $ 2,850 $ 2,850 Miscellaneous expenses $ 940 $ 2 $ 525 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 $9,020. The company expected to work 140 jobs in February but actually worked 146 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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
None
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:
Actual
Total for
February
Fixed
Component
Variable
Component
per Month
per Job
Revenue
$ 276
$ 35,890
Technician wages
$ 8,300
$ 8,150
Mobile lab operating expenses
$ 4,700
$ 32
$ 9,020
Office expenses
$ 2,300
$ 4
$ 2,710
Advertising expenses
$ 1,610
$ 1,680
Insurance
$ 2,850
$ 2,850
Miscellaneous expenses
$ 940
$ 2
$ 525
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 $9,020. The company expected to work 140 jobs
in February but actually worked 146 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.
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: Actual Total for February Fixed Component Variable Component per Month per Job Revenue $ 276 $ 35,890 Technician wages $ 8,300 $ 8,150 Mobile lab operating expenses $ 4,700 $ 32 $ 9,020 Office expenses $ 2,300 $ 4 $ 2,710 Advertising expenses $ 1,610 $ 1,680 Insurance $ 2,850 $ 2,850 Miscellaneous expenses $ 940 $ 2 $ 525 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 $9,020. The company expected to work 140 jobs in February but actually worked 146 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.
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education