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per Month Revenue Job $ 279 rixea variable Component Component per Actual Total for February $ 30,730 Technician wages $ 8,000 $ 7,850 Mobile lab operating expenses $ 4,600 $ 33 $ 8,400 office expenses $ 2,500 $ 2 $ 2,590 Advertising expenses $ 1,620 $ 1,690

per Month Revenue Job $ 279 rixea variable Component Component per Actual Total for February $ 30,730 Technician wages $ 8,000 $ 7,850 Mobile lab operating expenses $ 4,600 $ 33 $ 8,400 office expenses $ 2,500 $ 2 $ 2,590 Advertising expenses $ 1,620 $ 1,690

FINANCIAL ACCOUNTING
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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per Month Job Revenue $ 279 rixea variable Component Component per Actual Total for February $ 30,730 Technician wages Office expenses $ 8,000 $ 7,850 Mobile lab operating expenses $ 4,600 $ 33 $ 8,400 $ 2,500 $ 2 $ 2,590 Advertising expenses $ 1,620 $ 1,690 Insurance $ 2,890 Miscellaneous expenses $ 950 $ 2 $ 2,890 $ 495 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $33 per job, and the actual mobile lab operating expenses for February were $8,400. The company expected to work 120 jobs in February, but actually worked 126 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 Flexible Budget Performance Report For the Month Ended February 28 Jobs Actual Results 126 $ 30,730 Revenue Expenses: Technician wages 7,850 Mobile lab operating expenses 8,400 Office expenses 2,590 Advertising expenses 1,690 Insurance 2,890 Miscellaneous expenses 495 Total expense 23,915 Net operating income $ 6,815 Flexible Planning Budget Budget
Transcribed Image Text:per Month Job Revenue $ 279 rixea variable Component Component per Actual Total for February $ 30,730 Technician wages Office expenses $ 8,000 $ 7,850 Mobile lab operating expenses $ 4,600 $ 33 $ 8,400 $ 2,500 $ 2 $ 2,590 Advertising expenses $ 1,620 $ 1,690 Insurance $ 2,890 Miscellaneous expenses $ 950 $ 2 $ 2,890 $ 495 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $33 per job, and the actual mobile lab operating expenses for February were $8,400. The company expected to work 120 jobs in February, but actually worked 126 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 Flexible Budget Performance Report For the Month Ended February 28 Jobs Actual Results 126 $ 30,730 Revenue Expenses: Technician wages 7,850 Mobile lab operating expenses 8,400 Office expenses 2,590 Advertising expenses 1,690 Insurance 2,890 Miscellaneous expenses 495 Total expense 23,915 Net operating income $ 6,815 Flexible Planning Budget Budget
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