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 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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
icon
Concept explainers
Topic Video
Question

8

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
Expert Solution
steps

Step by step

Solved in 3 steps

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.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS