Exercise 9-16 (Algo) Flexible Budget Performance Report [LO9-1, LO9-2, LO9-3, LO9-4] 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 $ 8,500 54,700 $2,300 $ 1,560 $ 2,870 $948 Variable Component per Job $278 5.31 Actual Total for February $ 33,390 $ 8,350 $8,570 $ 2,670 $1,630 $ 2,870 $ 375 $1 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4.700 plus $31 per job, and the actual mobile lab operating expenses for February were $8.570. The company expected to work 130 jobs in February, but actually worked 134 jobs. Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity of each wariance by selecting "F" for favorable, "U" for unfavorable, and "None" for no
Exercise 9-16 (Algo) Flexible Budget Performance Report [LO9-1, LO9-2, LO9-3, LO9-4] 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 $ 8,500 54,700 $2,300 $ 1,560 $ 2,870 $948 Variable Component per Job $278 5.31 Actual Total for February $ 33,390 $ 8,350 $8,570 $ 2,670 $1,630 $ 2,870 $ 375 $1 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4.700 plus $31 per job, and the actual mobile lab operating expenses for February were $8.570. The company expected to work 130 jobs in February, but actually worked 134 jobs. Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity of each wariance by selecting "F" for favorable, "U" for unfavorable, and "None" for no
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]
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
Fixed
Component
per Month
Technician wages
Moble lab operating expenses
Office expenses
$ 8,500
$4,700
$ 2,300
$ 1,560
$ 2,870
$948
Advertising expenses
Insurance
Miscellaneous expenses
Total expense
Net operating income
$1
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus
$31 per job, and the actual mobile lab operating expenses for February were $8,570. The company expected to work 130 jobs in
February, but actually worked 134 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 favorable, "U" for unfavorable, and "None" for no
effect (.e., zero variance). Input all amounts as positive values.)
Actual
Results
Variable
Component
134
$33.390
per Job
$ 278
6,350
8.570
5.31
$4
2,670
1,630
2.870
375
24,465
$ 8.925
Actual
Total for
February
$ 33,390
$ 0,350
$ 6,570
$ 2,670
$ 1,630
AirQual Test Corporation
Flexible Budget Performance Report
For the Month Ended February 28
$ 2,870
$ 375
Flexible
Budget
*** 11
Planning
Budget
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Transcribed Image Text:Exercise 9-16 (Algo) Flexible Budget Performance Report (LO9-1, LO9-2, LO9-3, LO9-4]
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
Fixed
Component
per Month
Technician wages
Moble lab operating expenses
Office expenses
$ 8,500
$4,700
$ 2,300
$ 1,560
$ 2,870
$948
Advertising expenses
Insurance
Miscellaneous expenses
Total expense
Net operating income
$1
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus
$31 per job, and the actual mobile lab operating expenses for February were $8,570. The company expected to work 130 jobs in
February, but actually worked 134 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 favorable, "U" for unfavorable, and "None" for no
effect (.e., zero variance). Input all amounts as positive values.)
Actual
Results
Variable
Component
134
$33.390
per Job
$ 278
6,350
8.570
5.31
$4
2,670
1,630
2.870
375
24,465
$ 8.925
Actual
Total for
February
$ 33,390
$ 0,350
$ 6,570
$ 2,670
$ 1,630
AirQual Test Corporation
Flexible Budget Performance Report
For the Month Ended February 28
$ 2,870
$ 375
Flexible
Budget
*** 11
Planning
Budget
Next >
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