AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas andactual results for the month of February:VariableFixed Componentper MonthComponent perActual TotalJobfor February$ 36,170$ 7,950$ 9,360$ 2,770$ 1,690$ 2,870395Revenue$ 278Technician wagesMobile lab operating expensesOffice expenses$ 8,100$ 4,900$ 2,500$ 1,620$ 2,870$$ 333Advertising expensesInsuranceMiscellaneous expenses950$1$The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus$33 per job, and the actual mobile lab operating expenses for February were $9,360. The company expected to work 140 jobs inFebruary, but actually worked 144 jobs.Required:Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activityvariances for February. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for noeffect (i.e., zero variance). Input all amounts as positive values.)AirQual Test CorporationFlexible Budget Performance ReportFor the Month Ended February 28ActualFlexiblePlanningBudgetResultsBudgetJobs144Revenue$ 36,170| February, but actually worked 144 jobs.Required:Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activityvariances for February. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for noeffect (i.e., zero variance). Input all amounts as positive values.)AirQual Test CorporationFlexible Budget Performance ReportFor the Month Ended February 28ActualPlanningBudgetFlexibleResultsBudgetJobs144Revenue$ 36,170Expenses:Technician wages7,950Mobile lab operating9,360expensesOffice expenses2,770Advertising expenses1,690Insurance2,870Miscellaneous expenses395Total expense25,035Net operating income$ 11,135

Name: AirQual Test Corporation provides on-site air quality testing service
Uploaded: 2024-03-20T06:32:49.000Z
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Description: AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas andactual results for the month of February:VariableFixed Componentper MonthComponent perActual TotalJobfor February$ 36,170

Solution: AirQual Test Corporation Flexible Budget Performance Report For the month Ended February 28 Particulars Actual results Revenue and spending variances Flexible Budget Activity Variances Planning Budget Flights 144 144 140 Revenue $36,170 $3,862 U $40,032 $1,112 F $38,920 Expenses: Technical wages $7,950 $150 F $8,100 $0 None $8,100 Mobile lab operating expenses $9,360 $292 F $9,652 $132 U $9,520 Office Expenses $2,770 $162 F $2,932 $12 U $2,920 Advertising Expense $1,690 $70 U $1,620 $0 None $1,620 Insurance $2,870 $0 None $2,870 $0 None $2,870 Miscellaneous Expenses $395 $699 F $1,094 $4 U $1,090 Total expense $25,035 $1,233 F $26,268 $148 U $26,120 Net Operating Income $11,135 $2,629 U $13,764 $964 F $12,800

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rQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and tual results for the month of February: Variable Fixed Component Component per Job Actual Total per Month for February $ 36,170 $ 7,950 $ 9,360 $ 2,770 $ 1,690 $ 2,870 Revenue $ 278 Technician wages Mobile lab operating expenses Office expenses Advertising expenses $ 8,100 $ 4,900 $ 2,500 $ 1,620 $ 2,870 $ $ 33 2$ 3 Insurance Miscellaneous expenses 950 1 $ 395 e company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus 83 per job, and the actual mobile lab operating expenses for February were $9,360. The company expected to work 140 jobs in ebruary, but actually worked 144 jobs.

rQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and tual results for the month of February: Variable Fixed Component Component per Job Actual Total per Month for February $ 36,170 $ 7,950 $ 9,360 $ 2,770 $ 1,690 $ 2,870 Revenue $ 278 Technician wages Mobile lab operating expenses Office expenses Advertising expenses $ 8,100 $ 4,900 $ 2,500 $ 1,620 $ 2,870 $ $ 33 2$ 3 Insurance Miscellaneous expenses 950 1 $ 395 e company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus 83 per job, and the actual mobile lab operating expenses for February were $9,360. The company expected to work 140 jobs in ebruary, but actually worked 144 jobs.

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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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 Componentper Month VariableComponent per Job Actual Totalfor February Revenue $ 275 $ 27,500 Technician wages $ 8,300 $ 8,150 Mobile lab operating expenses $ 4,700 $ 33 $ 8,170 Office expenses $ 2,700 $ 2 $ 2,770 Advertising expenses $ 1,610 $ 1,680 Insurance $ 2,890 $ 2,890 Miscellaneous expenses $ 930 $ 2 $ 455 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus $33 per job, and the actual mobile lab operating expenses for February were $8,170. The company expected to work 110 jobs in February, but actually worked 114 jobs. Required: Prepare a flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and…
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