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- Revenue Job $ 278 for February $ 27,830 Technician wages $ 8,600 $ 8,450 Mobile lab operating expenses $ 4,600 $ 31 $ 7,850 Office expenses $ 2,500 $ 2 $ 2,570 Advertising expenses $ 1,580 $ 1,650 Insurance $ 2,890 $ 2,890 Miscellaneous expenses $ 950 $ 1 $ 365 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $31 per job, and the actual mobile lab operating expenses for February were $7,850. The company expected to work 110 jobs in February but actually worked 114 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 (Le., zero varlance). Input all amounts as positive values. AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Jobs Actual Results 114 $ 27,830 Revenue Expenses: Technician wages 8,450 Mobile lab operating expenses 7,850 Office expenses 2,570 Advertising expenses 1,650 Insurance 2,890 Miscellaneous expenses Total expenses Net operating income $ 4,055 365 23,775 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- Revenue Job $ 278 for February $ 27,830 Technician wages $ 8,600 $ 8,450 Mobile lab operating expenses $ 4,600 $ 31 $ 7,850 Office expenses $ 2,500 $ 2 $ 2,570 Advertising expenses $ 1,580 $ 1,650 Insurance $ 2,890 $ 2,890 Miscellaneous expenses $ 950 $ 1 $ 365 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $31 per job, and the actual mobile lab operating expenses for February were $7,850. The company expected to work 110 jobs in February but actually worked 114 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 (Le., zero varlance). Input all amounts as positive values. AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Jobs Actual Results 114 $ 27,830 Revenue Expenses: Technician wages 8,450 Mobile lab operating expenses 7,850 Office expenses 2,570 Advertising expenses 1,650 Insurance 2,890 Miscellaneous expenses Total expenses Net operating income $ 4,055 365 23,775 Flexible Planning Budget Budget
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Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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