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 per Month Variable Component Revenue per Job $ 277 Actual Total for February $ 38,800 Technician wages $ 8,400 $ 8,250 Mobile lab operating expenses $ 4,800 $ 31 $ 9,290 Office expenses $ 2,800 $ 4 $ 3,250 Advertising expenses $ 1,600 $ 1,670 Insurance $ 2,880 $ 2,880 Miscellaneous expenses $ 970 $ 2 $ 575 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 $9,290. The company expected to work 150 jobs in February, but actually worked 160 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 160 $ 38,800 Revenue Expenses: Technician wages 8,250 Mobile lab operating expenses 9,290 Office expenses 3,250 Advertising expenses 1,670 Insurance 2,880 Miscellaneous expenses Total expense Net operating income 575 25,915 $ 12,885 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 per Month Variable Component Revenue per Job $ 277 Actual Total for February $ 38,800 Technician wages $ 8,400 $ 8,250 Mobile lab operating expenses $ 4,800 $ 31 $ 9,290 Office expenses $ 2,800 $ 4 $ 3,250 Advertising expenses $ 1,600 $ 1,670 Insurance $ 2,880 $ 2,880 Miscellaneous expenses $ 970 $ 2 $ 575 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 $9,290. The company expected to work 150 jobs in February, but actually worked 160 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 160 $ 38,800 Revenue Expenses: Technician wages 8,250 Mobile lab operating expenses 9,290 Office expenses 3,250 Advertising expenses 1,670 Insurance 2,880 Miscellaneous expenses Total expense Net operating income 575 25,915 $ 12,885 Flexible Planning Budget Budget
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