AirQual Test Corporation provides on-site air quality testing services. The company provided the following cost formulas and actualresults for the month of February:FixedComponentper MonthVariableComponent Actual Totalper Job for FebruaryRevenueTechnician wagesOffice expenses$ 280$ 36,450$ 8,500$ 8,350Mobile lab operating expenses$ 4,700$ 34$ 9,300$ 2,200$ 3$ 2,470Advertising expenses$Insurance1,590$ 2,860$Miscellaneous expenses$ 940$ 21,660$ 2,860$ 525The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus$34 per job, and the actual mobile lab operating expenses for February were $9,300. The company expected to work 140 jobs inFebruary but actually worked 146 Jobs.Required:Prepare a flexible budget performance report for February.Note: Indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect (I.e., zerovariance). Input all amounts as positive values.AirQual Test CorporationFlexible Budget Performance ReportFor the Month Ended February 28JobsActualResults148$ 36,450RevenueExpenses:Technician wages8,350Mobile lab operating expenses9,300Office expenses2,470Advertising expenses1,660Insurance2,860Miscellaneous expensesTotal expensesNet operating income$ 11,28552525,165FlexiblePlanningBudgetBudget

Name: AirQual Test Corporation provides on-site air quality testing service
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Description: AirQual Test Corporation provides on-site air quality testing services. The company provided the following cost formulas and actualresults for the month of February:FixedComponentper MonthVariableComponent Actual Totalper Job for FebruaryRevenueTech

Budgeting: It is a process of planning the work to be performed. Under this process a formal plan is…

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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: Revenue Technician wages Fixed Component per Month $ & 500 Variable Component Actual Total per Job for February $ 280 $ 36,450 $8 350

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: Revenue Technician wages Fixed Component per Month $ & 500 Variable Component Actual Total per Job for February $ 280 $ 36,450 $8 350

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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