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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 Component Variable Component per Month Revenue per Job $ 277 Actual Total for February $ 38,800 Technician wages $ 8,500 $ 8,350 Mobile lab operating expenses $ 4,600 $ 31 $ 9,090 Office expenses $ 2,200 $ 4 $ 2,650 Advertising expenses $ 1,620 $ 1,690 Insurance $ 2,880 Miscellaneous expenses $ 960 $ 2 $ 2,880 $ 565 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 $9,090. The company expected to work 150 jobs in February but actually worked 160 jobs. Required: Prepare a flexible budget performance report 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. Jobs AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Results Revenue and Spending Variances Flexible Budget Activity Variances Planning Budget 160 160 150 $38,800 $ 44,320 Revenue Expenses: Technician wages 8,350 Mobile lab operating expenses 9,090 9,560 Office expenses 2,650 2,840 Advertising expenses 1,690 1,620 Insurance 2,880 2,880 Miscellaneous expenses Total expenses Net operating income 565 1,280 25,225 $ 13,575

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 Component Variable Component per Month Revenue per Job $ 277 Actual Total for February $ 38,800 Technician wages $ 8,500 $ 8,350 Mobile lab operating expenses $ 4,600 $ 31 $ 9,090 Office expenses $ 2,200 $ 4 $ 2,650 Advertising expenses $ 1,620 $ 1,690 Insurance $ 2,880 Miscellaneous expenses $ 960 $ 2 $ 2,880 $ 565 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 $9,090. The company expected to work 150 jobs in February but actually worked 160 jobs. Required: Prepare a flexible budget performance report 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. Jobs AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Results Revenue and Spending Variances Flexible Budget Activity Variances Planning Budget 160 160 150 $38,800 $ 44,320 Revenue Expenses: Technician wages 8,350 Mobile lab operating expenses 9,090 9,560 Office expenses 2,650 2,840 Advertising expenses 1,690 1,620 Insurance 2,880 2,880 Miscellaneous expenses Total expenses Net operating income 565 1,280 25,225 $ 13,575

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 Component per Month Variable Component Actual Total for February per Job Revenue $ 277 $ 38,800 Technician wages $ 8,500 $ 8,350 Mobile lab operating expenses $ 4,600 $ 31 $ 9,090 Office expenses $ 2,200 $ 4 $ 2,650 Advertising expenses $ 1,620 $ 1,690 Insurance $ 2,880 Miscellaneous expenses $ 960 $ 2 $ 2,880 $ 565 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 $9,090. The company expected to work 150 jobs in February but actually worked 160 jobs. Required: Prepare a flexible budget performance report 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. Jobs AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Revenue and Flexible Planning Activity Variances Results Spending Variances Budget Budget 160 160 150 $ 38,800 $ 44,320 Revenue Expenses: Technician wages 8,350 Mobile lab operating expenses 9,090 9,560 Office expenses 2,650 2,840 Advertising expenses 1,690 1,620 Insurance 2,880 2.880 Miscellaneous expenses Total expenses Net operating income 565 1,280 25,225 $ 13,575
Transcribed Image Text: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 Component per Month Variable Component Actual Total for February per Job Revenue $ 277 $ 38,800 Technician wages $ 8,500 $ 8,350 Mobile lab operating expenses $ 4,600 $ 31 $ 9,090 Office expenses $ 2,200 $ 4 $ 2,650 Advertising expenses $ 1,620 $ 1,690 Insurance $ 2,880 Miscellaneous expenses $ 960 $ 2 $ 2,880 $ 565 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 $9,090. The company expected to work 150 jobs in February but actually worked 160 jobs. Required: Prepare a flexible budget performance report 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. Jobs AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Revenue and Flexible Planning Activity Variances Results Spending Variances Budget Budget 160 160 150 $ 38,800 $ 44,320 Revenue Expenses: Technician wages 8,350 Mobile lab operating expenses 9,090 9,560 Office expenses 2,650 2,840 Advertising expenses 1,690 1,620 Insurance 2,880 2.880 Miscellaneous expenses Total expenses Net operating income 565 1,280 25,225 $ 13,575
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