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:

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Exercise 9-16 (Algo) Flexible Budget Performance Report [LO9-1, LO9-2, LO9-3, LO9-4]
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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
Variable
Component Component per Actual Total
per Month
Revenue
Job
$ 279
for February
$ 30,730
Technician wages
$ 8,500
$ 8,350
Mobile lab operating expenses
$ 4,600
$ 34
$ 8,520
Office expenses
$ 2,400
$ 3
$ 2,610
Advertising expenses
$ 1,580
$ 1,650
Insurance
$ 2,850
Miscellaneous expenses
$ 980
$ 2
$ 2,850
$ 525
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4.600 plus
$34 per job, and the actual mobile lab operating expenses for February were $8,520. 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 varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero
varlance). Input all amounts as positive values.
AirQual Test Corporation
Flexible Budget Performance Report
Jobs
For the Month Ended February 28
Actual
Results
Flexible
Planning
Budget
Budget
126
$ 30,730
Revenue
Expenses:
Technician wages
8.350
Mobile lab operating expenses
8,520
Office expenses
2,610
Advertising expenses
1.650
Insurance
Miscellaneous expenses
Total expenses
Net operating income
2,850
525
24,505
$ 6,225
Transcribed Image Text:Exercise 9-16 (Algo) Flexible Budget Performance Report [LO9-1, LO9-2, LO9-3, LO9-4] อ 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 Variable Component Component per Actual Total per Month Revenue Job $ 279 for February $ 30,730 Technician wages $ 8,500 $ 8,350 Mobile lab operating expenses $ 4,600 $ 34 $ 8,520 Office expenses $ 2,400 $ 3 $ 2,610 Advertising expenses $ 1,580 $ 1,650 Insurance $ 2,850 Miscellaneous expenses $ 980 $ 2 $ 2,850 $ 525 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4.600 plus $34 per job, and the actual mobile lab operating expenses for February were $8,520. 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 varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as positive values. AirQual Test Corporation Flexible Budget Performance Report Jobs For the Month Ended February 28 Actual Results Flexible Planning Budget Budget 126 $ 30,730 Revenue Expenses: Technician wages 8.350 Mobile lab operating expenses 8,520 Office expenses 2,610 Advertising expenses 1.650 Insurance Miscellaneous expenses Total expenses Net operating income 2,850 525 24,505 $ 6,225
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