AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost...
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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 Component Variable Component per Month Revenue per Job $ 280 Actual Total for February $ 39,250 Technician wages $ 8,200 $ 8,050 Mobile lab operating expenses $ 4,700 $ 33 $ 9,490 Office expenses $ 2,400 $ 4 $ 2,850 Advertising expenses $ 1,570 $ 1,640 Insurance $ 2,890 $ 2,890 Miscellaneous expenses $ 940 $ 2 $ 545 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 $9,490. The company expected to work 150 jobs in February, but actually worked 152 jobs. Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances 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. Jobs AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Results 152 $ 39,250 Revenue Expenses: Technician wages 8,050 Mobile lab operating expenses 9,490 Office expenses 2,850 Advertising expenses 1,640 Insurance 2,890 Miscellaneous expenses Total expense Net operating income 545 25,465 $ 13,785 Flexible Planning Budget Budget 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 Variable Component per Month Revenue per Job $ 280 Actual Total for February $ 39,250 Technician wages $ 8,200 $ 8,050 Mobile lab operating expenses $ 4,700 $ 33 $ 9,490 Office expenses $ 2,400 $ 4 $ 2,850 Advertising expenses $ 1,570 $ 1,640 Insurance $ 2,890 $ 2,890 Miscellaneous expenses $ 940 $ 2 $ 545 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 $9,490. The company expected to work 150 jobs in February, but actually worked 152 jobs. Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances 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. Jobs AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Results 152 $ 39,250 Revenue Expenses: Technician wages 8,050 Mobile lab operating expenses 9,490 Office expenses 2,850 Advertising expenses 1,640 Insurance 2,890 Miscellaneous expenses Total expense Net operating income 545 25,465 $ 13,785 Flexible Planning Budget Budget
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