AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost...
Fantastic news! We've Found the answer you've been seeking!
Question:
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: Fixed Component per Month Variable Component per Job. Revenue $ 280 Technician wages $ 8,500 Actual Total for February $ 33,650 $ 8,350 $ 8,670 $ 2,740 $1,670 $2,880 Mobile lab operating expenses $ 4,800 $ 31 office expenses $ 2,500 Advertising expenses Insurance $ 1,600 $ 2,880 $ 970 Miscellaneous expenses $2 $ 535 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.) Jobs Revenue Expenses: Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance - Miscellaneous expenses Total expense Net operating income AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Results 138 $ 33,650 8,350 8,670 2,740 1,670 2,880 535 24,845 $ 8,805 Flexible Budget Planning 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 per Job. Revenue $ 280 Technician wages $ 8,500 Actual Total for February $ 33,650 $ 8,350 $ 8,670 $ 2,740 $1,670 $2,880 Mobile lab operating expenses $ 4,800 $ 31 office expenses $ 2,500 Advertising expenses Insurance $ 1,600 $ 2,880 $ 970 Miscellaneous expenses $2 $ 535 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.) Jobs Revenue Expenses: Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance - Miscellaneous expenses Total expense Net operating income AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Results 138 $ 33,650 8,350 8,670 2,740 1,670 2,880 535 24,845 $ 8,805 Flexible Budget Planning Budget
Expert Answer:
Answer rating: 100% (QA)
Jul70 821 Solution Flexible Budget Performance Report For the Month Ended Feb28 Particulars Job... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these accounting questions
-
Air Assurance Corporation provides on site air quality testing services. The company has provided the following data concerning its operations: The company uses the number of jobs as its measure of...
-
Prepare a flexible budget performance report title (in proper form) for Spalding Company for the calendar year 2009. Why is a proper title important for this or any report?
-
Prepare a flexible budget performance report title (in proper form) for Spalding Company for the calendar year 2015. Why is a proper title important for this or any report?
-
(a) Alison has been self-employed for many years. Her profit for tax year 2020-21 is 6,380. Is she liable to pay Class 2 NICs for the year? (b) Amanda starts a business on 25 May 2020 and she is...
-
What should you do a full year before your job search?
-
A supermarket chain is interested in exploring the relationship between the sales of its store-brand canned vegetables (y), the amount spent on promotion of the vegetables in local newspapers (x1)...
-
The adjusted trial balances of PDQ, Inc., at December 31,2010, and December 31, 2011, include these amounts: Requirement 1. Compute the amount of supplies expense, salary expense, and service revenue...
-
Wasik Company had the following inventory balances at the beginning and end of August 2010: All raw material is direct to the production process. The following information is also available about...
-
In your essay, you should introduce the subject and then either explain the subject you have chosen, or take a position about your subject and support it. Topic (Argument) Why is financial literacy...
-
The following summarized data (amounts in millions) are taken from the September 26, 2020, and September 28, 2019, comparative financial statements of Apple Incorporated, a company that designs,...
-
Prepare the Bartrand Irrigation Systems statement of retained earnings for the year ended December 31, 2016. Enter any increases in retained earnings prior to the subtotal and any decreases to...
-
As a student of business, you may know well that companies use many sophisticated models and techniques (for example, SWOT Analysis) to gain a competitive edge on the market. How can we use those...
-
An experiment was recently carried out where a child, an astrologer and a financial analyst were each given 10,000 to invest for eight years. Who do you think achieved the best results?
-
What are the best 3 financial ratios to analysis an airlines financialstatement and why
-
Discuss the impact of microbiologically influenced corrosion (MIC) on industrial systems, including the role of bacteria and biofilms in accelerating corrosion processes and the strategies employed...
-
How is Sierra Club Foundation and Environmental Defense Fund different and similar from each other? Compare their programs, mission, staff, board and financial statements to arrive at a conclusion....
-
Due to specific threats and events over the last decade, which Federal organization has increased its visibility regarding disaster planning and response? Agency for International Development Center...
-
A local politician is concerned that a program for the homeless in her city is discriminating against blacks and other minorities. The following data were taken from a random sample of black and...
-
How can the activity rates (i.e., cost per activity) for the various activities be used to target process improvements?
-
Architectural Consultants began operations on January 2. The following activity was recorded in the companys Work in Process account for the first month of operations: Leeds Architectural Consultants...
-
The questions in this problem are based on Blue Nile, Inc. To answer the questions, you will need to download Blue Niles 2004 Form 10-K at www.sec.gov/edgar/searchedgar/company search.html. Once at...
-
A pipe branches symmetrically into two legs of length \(L\), and the whole system rotates with angular speed \(\omega\) around its axis of symmetry. Each branch is inclined at angle \(\alpha\) to the...
-
For the rotating sprinkler of Example 4.13, what value of \(\alpha\) will produce the maximum rotational speed? What angle will provide the maximum area of coverage by the spray? Draw a velocity...
-
Compressed air is stored in a pressure bottle with a volume of \(100 \mathrm{~L}\), at \(500 \mathrm{kPa}\) absolute and \(20^{\circ} \mathrm{C}\). At a certain instant, a valve is opened and mass...
Study smarter with the SolutionInn App