Ook 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 Component per Month Revenue Variable Component per Job $ 275 Actual Total for February $ 33,000 Technician wages $ 8,500 $ 8,350 Mobile lab operating expenses $ 4,900 $ 30 $ 8,640 Office expenses $ 2,700 $ 3 $ 2,940 Advertising expenses $ 1,610 $ 1,680 Insurance $ 2,870 $ 2,870 Miscellaneous expenses $ 950 $ 2 $ 515 rint The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $30 per job, and the actual mobile lab operating expenses for February were $8,640. 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 favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) AirQual Test Corporation Jobs Revenue Flexible Budget Performance Report For the Month Ended February 28 Actual Results Flexible Planning Budget Budget 138 $ 33,000 Expenses: Technician wages 8,350 Mobile lab operating 8,640 expenses Office expenses 2,940 Advertising expenses 1,680 Insurance 2,870 Miscellaneous expenses 515 Total expense 24,995 Net operating income $ 8,005
Ook 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 Component per Month Revenue Variable Component per Job $ 275 Actual Total for February $ 33,000 Technician wages $ 8,500 $ 8,350 Mobile lab operating expenses $ 4,900 $ 30 $ 8,640 Office expenses $ 2,700 $ 3 $ 2,940 Advertising expenses $ 1,610 $ 1,680 Insurance $ 2,870 $ 2,870 Miscellaneous expenses $ 950 $ 2 $ 515 rint The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $30 per job, and the actual mobile lab operating expenses for February were $8,640. 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 favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) AirQual Test Corporation Jobs Revenue Flexible Budget Performance Report For the Month Ended February 28 Actual Results Flexible Planning Budget Budget 138 $ 33,000 Expenses: Technician wages 8,350 Mobile lab operating 8,640 expenses Office expenses 2,940 Advertising expenses 1,680 Insurance 2,870 Miscellaneous expenses 515 Total expense 24,995 Net operating income $ 8,005
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
None
Transcribed Image Text:Ook
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 Component
per Month
Revenue
Variable
Component per Job
$ 275
Actual Total
for February
$ 33,000
Technician wages
$ 8,500
$ 8,350
Mobile lab operating expenses
$ 4,900
$ 30
$ 8,640
Office expenses
$ 2,700
$
3
$ 2,940
Advertising expenses
$ 1,610
$ 1,680
Insurance
$ 2,870
$
2,870
Miscellaneous expenses
$
950
$
2
$ 515
rint
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus
$30 per job, and the actual mobile lab operating expenses for February were $8,640. 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 favorable, "U" for unfavorable, and "None" for no
effect (i.e., zero variance). Input all amounts as positive values.)
AirQual Test Corporation
Jobs
Revenue
Flexible Budget Performance Report
For the Month Ended February 28
Actual
Results
Flexible
Planning
Budget
Budget
138
$ 33,000
Expenses:
Technician wages
8,350
Mobile lab operating
8,640
expenses
Office expenses
2,940
Advertising expenses
1,680
Insurance
2,870
Miscellaneous expenses
515
Total expense
24,995
Net operating income
$
8,005
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education