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 Actual Total for February per Month per Job Revenue Technician wages $276 $ 30,370 $ 8,300 $8,150 Mobile lab operating expenses $ 4,500 $ 35 $8,540 Office expenses $2,700 $3 $2,910 Advertising expenses $1,550 $1,620 Insurance $ 2,860 $2,860 Miscellaneous expenses $940 $1 $ 365 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,500 plus $35 per job, and the actual mobile lab operating expenses for February were $8,540. The company expected to work 120 jobs in February but actually worked 122 jobs.

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 Actual Total for February per Month per Job Revenue Technician wages $276 $ 30,370 $ 8,300 $8,150 Mobile lab operating expenses $ 4,500 $ 35 $8,540 Office expenses $2,700 $3 $2,910 Advertising expenses $1,550 $1,620 Insurance $ 2,860 $2,860 Miscellaneous expenses $940 $1 $ 365 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,500 plus $35 per job, and the actual mobile lab operating expenses for February were $8,540. The company expected to work 120 jobs in February but actually worked 122 jobs.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter1: Introduction To Cost Accounting

Section: Chapter Questions

Problem 11P: Spokane Production Co. obtained the following information from its records for July: Required: 1....

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AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February: Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Jobs Revenue Expenses: Technician wages Mobile lab operating expenses Office expenses Fixed Component per Month Advertising expenses Insurance $ 8,300 $ 4,800 $ 2,700 $ 1,580 $ 2,860 $930 Miscellaneous expenses Total expense Net operating income The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,800 plus $30 per job, and the actual mobile lab operating expenses for February were $8,240. The company expected to work 120 jobs in February, but actually worked 124 jobs. Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February.…
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 Mobile lab operating expenses office expenses Advertising expenses Insurance Miscellaneous expenses Jobs Revenue Expenses: Technician wages Mobile lab operating expenses Office expenses Fixed Variable Component Component per Actual Total per Month Job for February $ 279 $ 30,730 Advertising expenses Insurance $ 8,000 $ 4,800 $ 2,300 $ 1,560 $ 2,880 $970 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,800 plus $34 per job, and the actual mobile lab operating expenses for February were $8,720. The company expected to work 120 jobs in February but actually worked 128 jobs. Miscellaneous expenses Total expenses Net operating income Required: Prepare a flexible budget performance report for February. Note: Indicate the effect of…
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 Mobile lab operating expenses office expenses Advertising expenses Insurance Miscellaneous expenses Jobs Revenue Expenses Fixed Variable Component Component per Actual Total for February per Month $ 30,370 Technician wages Mobile lab operating expenses Office expenses $ 8,400 $4,600 $ 2,700 $ 1,610 $ 2,890 $940 Advertising expenses Insurance The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $35 per job, and the actual mobile lab operating expenses for February were $8,640. The company expected to work 120 jobs in February but actually worked 128 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…
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AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February: Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Fixed Component per Month $ 8,300 $ 4,600 $ 2,200 $ 1,590 $ 2,860 $ 960 Variable Component per Job $ 279 $ 32 $ 3 $ 1 Actual Total for February $ 30,730 $ 8,150 $ 8,280 $ 2,410 $ 1,660 $ 2,860 $ 385 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $32 per job, and the actual mobile lab operating expenses for February were $8,280. The company expected to work 120 jobs in February, but actually worked 128 jobs. Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February. (Indicate the effect of each variance by selecting…
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February: rixed Component per Month Variable Actual Total for February $ 33,650 $ 8,350 $ 8,670 $ 2,740 $ 1,670 $ 2,880 $ 535 Component per Job $ 280 Revenue Technician wages Mobile lab operating expenses office expenses Advertiaing expenses Insurance $ 8,500 $ 4,800 $ 2,500 $1,600 $ 2,880 $ 970 $ 31 Mincellaneous expense $ 2 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,800 plus $31 per job, and the actual mobile lab operating expenses for February were $8,670. The company expected to work 130 jobs in February, but actually worked 138 jobs. Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February. (Indicate the effect of each variance by selecting "F" for…
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 Mobile lab operating expenses Office expenses. Advertising expenses Insurance Miscellaneous expenses Jobs Revenue Expenses: Fixed Variable Component Component per Actual Total per Month Job for February $ 277 $ 30,490 $ 8,150 $ 8,580 $ 2,890 $ 1,640 $2,880 $375 Technician wages Mobile lab operating expenses Office expenses $1 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $32 per job, and the actual mobile lab operating expenses for February were $8,580. The company expected to work 120 jobs in February but actually worked 130 jobs. Advertising expenses Insurance Miscellaneous expenses Total expenses Net operating income $ 8,300 $ 4,900 Required: Prepare a flexible budget performance report for February. Note:…
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 Actual Total per Job for February Revenue Technician wages Office expenses $ 280 $ 36,450 $ 8,500 $ 8,350 Mobile lab operating expenses $ 4,700 $ 34 $ 9,300 $ 2,200 $ 3 $ 2,470 Advertising expenses $ Insurance 1,590 $ 2,860 $ Miscellaneous expenses $ 940 $ 2 1,660 $ 2,860 $ 525 The 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 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).…
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February: Fixed Variable Component Component per Actual Total per Month Revenue Technician wages Office expenses Job $ 276 for February $ 30,370 $ 8,600 $ 8,450 Mobile lab operating expenses $ 5,000 $ 32 $ 8,680 $ 2,200 $ 3 $ 2,410 Advertising expenses Insurance $ 1,590 $ 2,880 $ 1,660 Miscellaneous expenses $ 960 $ 2 $ 2,880 $ 505 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $5,000 plus $32 per job, and the actual mobile lab operating expenses for February were $8,680. The company expected to work 120 jobs in February, but actually worked 124 jobs. Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February. (Indicate the effect of each variance by selecting…
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February: Fixed Componentper Month VariableComponent per Job Actual Totalfor February Revenue $ 275 $ 27,500 Technician wages $ 8,300 $ 8,150 Mobile lab operating expenses $ 4,700 $ 33 $ 8,170 Office expenses $ 2,700 $ 2 $ 2,770 Advertising expenses $ 1,610 $ 1,680 Insurance $ 2,890 $ 2,890 Miscellaneous expenses $ 930 $ 2 $ 455 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus $33 per job, and the actual mobile lab operating expenses for February were $8,170. The company expected to work 110 jobs in February, but actually worked 114 jobs. Required: Prepare a flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and…
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February: Fixed Componentper Month VariableComponent per Job Actual Totalfor February Revenue $ 280 $ 28,050 Technician wages $ 8,200 $ 8,050 Mobile lab operating expenses $ 4,900 $ 32 $ 8,260 Office expenses $ 2,400 $ 2 $ 2,470 Advertising expenses $ 1,570 $ 1,640 Insurance $ 2,890 $ 2,890 Miscellaneous expenses $ 930 $ 2 $ 455 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $32 per job, and the actual mobile lab operating expenses for February were $8,260. The company expected to work 110 jobs in February, but actually worked 114 jobs. Required: Prepare a flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and…
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 Job for February Revenue $ 276 $ 30,370 Technician wages $ 8,300 $ 8,150 Mobile lab operating expenses $ 4,900 $ 32 $ 8,580 Office expenses $ 2,300 $ 3 $ 2,510 Advertising expenses $ 1,570 $ 1,640 Insurance $ 2,850 $ 2,850 Miscellaneous expenses $ 930 $ 2 $ 475 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $32 per job, and the actual mobile lab operating expenses for February were $8,580. The company expected to work 120 jobs in February but actually worked 124 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).…