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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: Revenue Technician wages Mobile lab operating expenses office expenses Advertising expenses Insurance Miscellaneous expenses Jobs Revenue Expenses: Technician wages Mobile lab operating expenses Office expenses Fixed Variable Component Component per Actual Total per Month for February $ 38,950 Advertising expenses Insurance $ 8,100 $ 4,600 $ 2,400 $ 1,590 $ 2,880 $ 930 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $34 per job, and the actual mobile lab operating expenses for February were $9,540. The company expected to work 150 jobs in February, but actually worked 156 jobs. Miscellaneous expenses Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February. Total expense Net operating income 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. Job $ 278 $34 $3 Actual Results $1 156 $ 38,950 $ 7,950 $ 9,540 $ 2,700 $ 1,660 $ 2,880 $385 7,950 9,540 2,700 1,660 2,880 385 25,115 $ 13,835 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Flexible Budget Planning 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: Revenue Technician wages Mobile lab operating expenses office expenses Advertising expenses Insurance Miscellaneous expenses Jobs Revenue Expenses: Technician wages Mobile lab operating expenses Office expenses Fixed Variable Component Component per Actual Total per Month for February $ 38,950 Advertising expenses Insurance $ 8,100 $ 4,600 $ 2,400 $ 1,590 $ 2,880 $ 930 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $34 per job, and the actual mobile lab operating expenses for February were $9,540. The company expected to work 150 jobs in February, but actually worked 156 jobs. Miscellaneous expenses Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February. Total expense Net operating income 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. Job $ 278 $34 $3 Actual Results $1 156 $ 38,950 $ 7,950 $ 9,540 $ 2,700 $ 1,660 $ 2,880 $385 7,950 9,540 2,700 1,660 2,880 385 25,115 $ 13,835 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Flexible Budget Planning Budget

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...
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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: Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Jobs Revenue Expenses: Technician wages Mobile lab operating expenses Office expenses Fixed Variable Component Component per Actual Total per Month Job for February $ 278 $ 38,950 $ 7,950 $ 9,540 Advertising expenses Insurance $ 8,100 $ 4,600 $2,400 $ 1,590 $ 2,880 $930 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $34 per job, and the actual mobile lab operating expenses for February were $9,540. The company expected to work 150 jobs in February, but actually worked 156 jobs. Miscellaneous expenses Total expense Net operating income 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. $ 34 $3 Actual Results $ 1 156 $ 38,950 $ 2,700 $ 1,660 $ 2,880 $385 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 7,950 9,540 2,700 1,660 2,880 385 25,115 $ 13,835 Flexible Budget Planning 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: Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Jobs Revenue Expenses: Technician wages Mobile lab operating expenses Office expenses Fixed Variable Component Component per Actual Total per Month Job for February $ 278 $ 38,950 $ 7,950 $ 9,540 Advertising expenses Insurance $ 8,100 $ 4,600 $2,400 $ 1,590 $ 2,880 $930 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $34 per job, and the actual mobile lab operating expenses for February were $9,540. The company expected to work 150 jobs in February, but actually worked 156 jobs. Miscellaneous expenses Total expense Net operating income 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. $ 34 $3 Actual Results $ 1 156 $ 38,950 $ 2,700 $ 1,660 $ 2,880 $385 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 7,950 9,540 2,700 1,660 2,880 385 25,115 $ 13,835 Flexible Budget Planning Budget
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