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per Month Revenue Job $ 280 Component Component per Actual Total for February $28,050 Technician wages Office expenses $ 8,400 $ 8,250 Mobile lab operating expenses $ 4,500 $ 32 $ 7,860 $ 2,500 $ 2 $ 2,570 Advertising expenses $1,570 $ 1,640 Insurance $ 2,890 Miscellaneous expenses $ 940 $ 2 $ 2,890 $ 465 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,500 plus $32 per job, and the actual mobile lab operating expenses for February were $7,860. The company expected to work 110 jobs in February but actually worked 114 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). Input all amounts as positive values.

per Month Revenue Job $ 280 Component Component per Actual Total for February $28,050 Technician wages Office expenses $ 8,400 $ 8,250 Mobile lab operating expenses $ 4,500 $ 32 $ 7,860 $ 2,500 $ 2 $ 2,570 Advertising expenses $1,570 $ 1,640 Insurance $ 2,890 Miscellaneous expenses $ 940 $ 2 $ 2,890 $ 465 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,500 plus $32 per job, and the actual mobile lab operating expenses for February were $7,860. The company expected to work 110 jobs in February but actually worked 114 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). Input all amounts as positive values.

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 Component Component per Actual Total for February Revenue Technician wages $ 280 $ 28,050 $ 8,400 $ 8,250 Mobile lab operating expenses $ 4,500 $ 32 $ 7,860 office expenses $ 2,500 $ 2 $ 2,570 Advertising expenses $ 1,570 $ 1,640 Insurance $ 2,890 Miscellaneous expenses $ 940 $ 2 $ 2,890 $ 465 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,500 plus $32 per job, and the actual mobile lab operating expenses for February were $7,860. The company expected to work 110 jobs in February but actually worked 114 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). Input all amounts as positive values. AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Jobs Actual Revenue and Flexible Results Spending Variances Budget Planning Budget 114 160 150 $ 28,050 $ 5,520 U $ 44,320 $ 2,770 F S 41,550 Revenue Expenses: Technician wages 8,250 150 F 8.500 None 8,500 Mobile lab operating expenses 7,860 470 F 9.560 310 U 9,250 Office expenses 2,570 190 F 2,840 40 U 2,800 Advertising expenses 1,640 70 U 1,620 None 1,620 Insurance 2,890 None 2.880 None 2,880 Miscellaneous expenses Total expenses 465 23,675 715 F 1,280 20 U 1,260 1,455 F 26,680 370 U 26,310 Net operating income $ 4,375 $ 4,065 U $ 17,640 $ 2,400 F $ 15,240
Transcribed Image Text:per Month Job Component Component per Actual Total for February Revenue Technician wages $ 280 $ 28,050 $ 8,400 $ 8,250 Mobile lab operating expenses $ 4,500 $ 32 $ 7,860 office expenses $ 2,500 $ 2 $ 2,570 Advertising expenses $ 1,570 $ 1,640 Insurance $ 2,890 Miscellaneous expenses $ 940 $ 2 $ 2,890 $ 465 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,500 plus $32 per job, and the actual mobile lab operating expenses for February were $7,860. The company expected to work 110 jobs in February but actually worked 114 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). Input all amounts as positive values. AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Jobs Actual Revenue and Flexible Results Spending Variances Budget Planning Budget 114 160 150 $ 28,050 $ 5,520 U $ 44,320 $ 2,770 F S 41,550 Revenue Expenses: Technician wages 8,250 150 F 8.500 None 8,500 Mobile lab operating expenses 7,860 470 F 9.560 310 U 9,250 Office expenses 2,570 190 F 2,840 40 U 2,800 Advertising expenses 1,640 70 U 1,620 None 1,620 Insurance 2,890 None 2.880 None 2,880 Miscellaneous expenses Total expenses 465 23,675 715 F 1,280 20 U 1,260 1,455 F 26,680 370 U 26,310 Net operating income $ 4,375 $ 4,065 U $ 17,640 $ 2,400 F $ 15,240
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