Hansaben per MonthJobRevenue$ 279rixeavariableComponent Component per Actual Totalfor February$ 30,730Technician wagesOffice expenses$ 8,000$ 7,850Mobile lab operating expenses$ 4,600$ 33$ 8,400$ 2,500$ 2$ 2,590Advertising expenses$ 1,620$ 1,690Insurance$ 2,890Miscellaneous expenses$ 950$ 2$ 2,890$ 495The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus$33 per job, and the actual mobile lab operating expenses for February were $8,400. The company expected to work 120 jobs inFebruary, but actually worked 126 jobs.Required:Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activityvariances for February. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for noeffect (i.e., zero variance). Input all amounts as positive values.)AirQual Test CorporationFlexible Budget Performance ReportFor the Month Ended February 28JobsActualResults126$ 30,730RevenueExpenses:Technician wages7,850Mobile lab operating expenses8,400Office expenses2,590Advertising expenses1,690Insurance2,890Miscellaneous expenses495Total expense23,915Net operating income$6,815FlexiblePlanningBudgetBudget

Flexible budget performance report is a management report that compares actual results with budgeted…

per Month Revenue Job $ 279 rixea variable Component Component per Actual Total for February $ 30,730 Technician wages $ 8,000 $ 7,850 Mobile lab operating expenses $ 4,600 $ 33 $ 8,400 office expenses $ 2,500 $ 2 $ 2,590 Advertising expenses $ 1,620 $ 1,690

per Month Revenue Job $ 279 rixea variable Component Component per Actual Total for February $ 30,730 Technician wages $ 8,000 $ 7,850 Mobile lab operating expenses $ 4,600 $ 33 $ 8,400 office expenses $ 2,500 $ 2 $ 2,590 Advertising expenses $ 1,620 $ 1,690

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 20E

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Hansaben

per Month
Job
Revenue
$ 279
rixea
variable
Component Component per Actual Total
for February
$ 30,730
Technician wages
Office expenses
$ 8,000
$ 7,850
Mobile lab operating expenses
$ 4,600
$ 33
$ 8,400
$ 2,500
$ 2
$ 2,590
Advertising expenses
$ 1,620
$ 1,690
Insurance
$ 2,890
Miscellaneous expenses
$ 950
$ 2
$ 2,890
$ 495
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus
$33 per job, and the actual mobile lab operating expenses for February were $8,400. The company expected to work 120 jobs in
February, but actually worked 126 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
Flexible Budget Performance Report
For the Month Ended February 28
Jobs
Actual
Results
126
$ 30,730
Revenue
Expenses:
Technician wages
7,850
Mobile lab operating expenses
8,400
Office expenses
2,590
Advertising expenses
1,690
Insurance
2,890
Miscellaneous expenses
495
Total expense
23,915
Net operating income
$
6,815
Flexible
Planning
Budget
Budget

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