Homework Help is Here – Start Your Trial Now!
Business
Accounting
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 Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Fixed Component per Month $ 8,100 $ 4,900 $ 2,700 $ 1,600 $2,900 $ 940 Variable Component per Actual Total Job for February $ 277 $ 33,260 $ 7,950 $ 8,778 $ 31 $2 $2 $ 2,810 $ 1,670 $ 2,900 $ 505 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $31 per job, and the actual mobile lab operating expenses for February were $8,770. The company expected to work 130 jobs in February, but actually worked 132 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.)

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 Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Fixed Component per Month $ 8,100 $ 4,900 $ 2,700 $ 1,600 $2,900 $ 940 Variable Component per Actual Total Job for February $ 277 $ 33,260 $ 7,950 $ 8,778 $ 31 $2 $2 $ 2,810 $ 1,670 $ 2,900 $ 505 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $31 per job, and the actual mobile lab operating expenses for February were $8,770. The company expected to work 130 jobs in February, but actually worked 132 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.)

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
Chapter6: Process Costing
Section: Chapter Questions
Problem 24E: Baxter Company has two processing departments: Assembly and Finishing. A predetermined overhead rate...
See similar textbooks
icon
Related questions
icon
Concept explainers
Topic Video
Question

Don't give answer in image format 

S 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: Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Fixed Variable Component Component per Actual Total per Month Job for February $ 277 $ 33,260 $ 7,950 $ 8,770 $ 2,810 $ 1,670 $ 2,900 $ 505 $ 8,100 $ 4,900 $ 2,700 $ 1,600 $2,900 $940 $31 $2 $2 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4.900 plus $31 per job, and the actual mobile lab operating expenses for February were $8,770. The company expected to work 130 jobs in February, but actually worked 132 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.)
Transcribed Image Text:S 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: Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Fixed Variable Component Component per Actual Total per Month Job for February $ 277 $ 33,260 $ 7,950 $ 8,770 $ 2,810 $ 1,670 $ 2,900 $ 505 $ 8,100 $ 4,900 $ 2,700 $ 1,600 $2,900 $940 $31 $2 $2 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4.900 plus $31 per job, and the actual mobile lab operating expenses for February were $8,770. The company expected to work 130 jobs in February, but actually worked 132 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.)
es 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 132 $ 33,260 7,950 8,770 2,810 1,670 2,900 505 24,605 $8,655 Flexible Budget Planning Budget
Transcribed Image Text:es 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 132 $ 33,260 7,950 8,770 2,810 1,670 2,900 505 24,605 $8,655 Flexible Budget Planning Budget
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
SEE MORE TEXTBOOKS