AirQual Test Corporation provides on-site air quality testing services. The company provided the following cost formulas...
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AirQual Test Corporation provides on-site air quality testing services. The company provided the following cost formulas and actual results for the month of February: Fixed Variable Component Component per Actual Total per Month Job for February Revenue $ 278 $ 30,610 Technician wages $ 8,500 $ 8,350 Mobile lab operating expenses $ 4,600 $ 34 $ 8,520 Office expenses $ 2,300 $ 3 $ 2,510 Advertising expenses $ 1,600 $ 1,670 Insurance $ 2,880 Miscellaneous expenses $ 940 $ 2 $ 2,880 $ 485 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $34 per job, and the actual mobile lab operating expenses for February were $8,520. The company expected to work 120 jobs in February but actually worked 124 jobs. Required: Prepare a flexible budget performance report for February. Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as positive values. AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Jobs Actual Results 124 $ 30,610 Revenue Expenses: Technician wages 8,350 Mobile lab operating expenses 8,520 Office expenses 2,510 Advertising expenses 1,670 Insurance 2,880 Miscellaneous expenses 485 Total expenses 24,415 Net operating income $ 6,195 Flexible Planning Budget Budget AirQual Test Corporation provides on-site air quality testing services. The company provided the following cost formulas and actual results for the month of February: Fixed Variable Component Component per Actual Total per Month Job for February Revenue $ 278 $ 30,610 Technician wages $ 8,500 $ 8,350 Mobile lab operating expenses $ 4,600 $ 34 $ 8,520 Office expenses $ 2,300 $ 3 $ 2,510 Advertising expenses $ 1,600 $ 1,670 Insurance $ 2,880 Miscellaneous expenses $ 940 $ 2 $ 2,880 $ 485 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $34 per job, and the actual mobile lab operating expenses for February were $8,520. The company expected to work 120 jobs in February but actually worked 124 jobs. Required: Prepare a flexible budget performance report for February. Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as positive values. AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Jobs Actual Results 124 $ 30,610 Revenue Expenses: Technician wages 8,350 Mobile lab operating expenses 8,520 Office expenses 2,510 Advertising expenses 1,670 Insurance 2,880 Miscellaneous expenses 485 Total expenses 24,415 Net operating income $ 6,195 Flexible Planning Budget Budget
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