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.)

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AirQual Test Corporation
Flexible Budget Performance Report
For the Month Ended February 28
Actual
Results
Planning
Budget
Flexible
Budget
Jobs
138
Revenue
$ 3,650
Expenses:
Technician wages
8,350
Mobile lab operating expenses
8,670
Office expenses
2,740
Advertising expenses
1,670
Insurance
2,880
Miscellaneous expenses
535
Total expense
24,845
Net operating income
8,805
Transcribed Image Text:AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Results Planning Budget Flexible Budget Jobs 138 Revenue $ 3,650 Expenses: Technician wages 8,350 Mobile lab operating expenses 8,670 Office expenses 2,740 Advertising expenses 1,670 Insurance 2,880 Miscellaneous expenses 535 Total expense 24,845 Net operating income 8,805
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 favorable, "U" for unfavorable, and "None" for no
effect (i.e., zero variance). Input all amounts as positive values.)
Transcribed Image Text: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 favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
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