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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 per Job Actual Total for February Revenue $ 276 $ 30,370 Technician wages $ 8,100 $ 7,950 Mobile lab operating expenses $ 4,600 $ 30 $ 8,040 Office expenses $ 2,300 $ 4 $ 2,630 Advertising expenses $ 1,580 $ 1,650 Insurance $ 2,860 Miscellaneous expenses $ 970 $ 2 $ 2,860 $ 515 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $30 per job, and the actual mobile lab operating expenses for February were $8,040. The company expected to work 120 jobs in February, but actually worked 122 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. AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Jobs Actual Results 122 $ 30,370 Revenue Expenses: Technician wages 7,950 Mobile lab operating expenses 8,040 Office expenses 2,630 Advertising expenses 1,650 Insurance 2,860 Miscellaneous expenses 515 Total expense 23,645 Net operating income $ 6,725 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 per Job Actual Total for February Revenue $ 276 $ 30,370 Technician wages $ 8,100 $ 7,950 Mobile lab operating expenses $ 4,600 $ 30 $ 8,040 Office expenses $ 2,300 $ 4 $ 2,630 Advertising expenses $ 1,580 $ 1,650 Insurance $ 2,860 Miscellaneous expenses $ 970 $ 2 $ 2,860 $ 515 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $30 per job, and the actual mobile lab operating expenses for February were $8,040. The company expected to work 120 jobs in February, but actually worked 122 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. AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Jobs Actual Results 122 $ 30,370 Revenue Expenses: Technician wages 7,950 Mobile lab operating expenses 8,040 Office expenses 2,630 Advertising expenses 1,650 Insurance 2,860 Miscellaneous expenses 515 Total expense 23,645 Net operating income $ 6,725 Flexible Planning Budget Budget

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter5: Product And Service Costing: Job-order System
Section: Chapter Questions
Problem 22E: CleanCom Company specializes in cleaning commercial buildings and construction sites. Each building...
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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 per Job Actual Total for February Revenue $ 276 $ 30,370 Technician wages $ 8,100 $ 7,950 Mobile lab operating expenses $ 4,600 $ 30 $ 8,040 Office expenses $ 2,300 $ 4 $ 2,630 Advertising expenses $ 1,580 $ 1,650 Insurance $ 2,860 Miscellaneous expenses $ 970 $ 2 $ 2,860 $ 515 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $30 per job, and the actual mobile lab operating expenses for February were $8,040. The company expected to work 120 jobs in February, but actually worked 122 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. AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Jobs Actual Results 122 $ 30,370 Revenue Expenses: Technician wages 7,950 Mobile lab operating expenses 8,040 Office expenses 2,630 Advertising expenses 1,650 Insurance 2,860 Miscellaneous expenses 515 Total expense 23,645 Net operating income $ 6,725 Flexible Planning Budget Budget
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 Variable Component per Month per Job Actual Total for February Revenue $ 276 $ 30,370 Technician wages $ 8,100 $ 7,950 Mobile lab operating expenses $ 4,600 $ 30 $ 8,040 Office expenses $ 2,300 $ 4 $ 2,630 Advertising expenses $ 1,580 $ 1,650 Insurance $ 2,860 Miscellaneous expenses $ 970 $ 2 $ 2,860 $ 515 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $30 per job, and the actual mobile lab operating expenses for February were $8,040. The company expected to work 120 jobs in February, but actually worked 122 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. AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Jobs Actual Results 122 $ 30,370 Revenue Expenses: Technician wages 7,950 Mobile lab operating expenses 8,040 Office expenses 2,630 Advertising expenses 1,650 Insurance 2,860 Miscellaneous expenses 515 Total expense 23,645 Net operating income $ 6,725 Flexible Planning Budget Budget
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