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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 Revenue per Job $ 277 Actual Total for February $ 30,490 Technician wages $ 8,600 $ 8,450 Mobile lab operating expenses $ 4,600 $ 35 $ 8,640 Office expenses $ 2,600 $ 4 $ 2,930 Advertising expenses $ 1,570 $ 1,640 Insurance $ 2,980 Miscellaneous expenses $ 950 $ 2,880 $ 375 ences The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $35 per job, and the actual mobile lab operating expenses for February were $8,640. The company expected to work 120 jobs in February but actually worked 124 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 (l.e., zero variance). Input all amounts as positive values. AirQual Test Corporation Flexible Budget Performance Report Jobs For the Month Ended February 28 Actual Results Revenue and Spending Variances Flexible Budget Activity Variances Planning Budget 124 $ 30,490 Revenue Expenses: Technician wages 8,450 Mobile lab operating expenses 8,640 Office expenses 2,930 Advertising expenses 1,640 Insurance 2,880 Miscellaneous expenses 375 Total expenses 24,915 Net operating income $ 5,575

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 per Month Variable Component Revenue per Job $ 277 Actual Total for February $ 30,490 Technician wages $ 8,600 $ 8,450 Mobile lab operating expenses $ 4,600 $ 35 $ 8,640 Office expenses $ 2,600 $ 4 $ 2,930 Advertising expenses $ 1,570 $ 1,640 Insurance $ 2,980 Miscellaneous expenses $ 950 $ 2,880 $ 375 ences The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $35 per job, and the actual mobile lab operating expenses for February were $8,640. The company expected to work 120 jobs in February but actually worked 124 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 (l.e., zero variance). Input all amounts as positive values. AirQual Test Corporation Flexible Budget Performance Report Jobs For the Month Ended February 28 Actual Results Revenue and Spending Variances Flexible Budget Activity Variances Planning Budget 124 $ 30,490 Revenue Expenses: Technician wages 8,450 Mobile lab operating expenses 8,640 Office expenses 2,930 Advertising expenses 1,640 Insurance 2,880 Miscellaneous expenses 375 Total expenses 24,915 Net operating income $ 5,575

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 3CMA: Kimbeth Manufacturing uses a process cost system to manufacture dust density sensors for the mining...
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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 Revenue per Job $ 277 Actual Total for February $ 30,490 Technician wages $ 8,600 $ 8,450 Mobile lab operating expenses $ 4,600 $ 35 $ 8,640 Office expenses $ 2,600 $ 4 $ 2,930 Advertising expenses $ 1,570 $ 1,640 Insurance $ 2,980 Miscellaneous expenses $ 950 $ 2,880 $ 375 ences The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $35 per job, and the actual mobile lab operating expenses for February were $8,640. The company expected to work 120 jobs in February but actually worked 124 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 (l.e., zero variance). Input all amounts as positive values. AirQual Test Corporation Flexible Budget Performance Report Jobs For the Month Ended February 28 Actual Results Revenue and Spending Variances Flexible Budget Activity Variances Planning Budget 124 $ 30,490 Revenue Expenses: Technician wages 8,450 Mobile lab operating expenses 8,640 Office expenses 2,930 Advertising expenses 1,640 Insurance 2,880 Miscellaneous expenses 375 Total expenses 24,915 Net operating income $ 5,575
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 Revenue per Job $ 277 Actual Total for February $ 30,490 Technician wages $ 8,600 $ 8,450 Mobile lab operating expenses $ 4,600 $ 35 $ 8,640 Office expenses $ 2,600 $ 4 $ 2,930 Advertising expenses $ 1,570 $ 1,640 Insurance $ 2,980 Miscellaneous expenses $ 950 $ 2,880 $ 375 ences The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $35 per job, and the actual mobile lab operating expenses for February were $8,640. The company expected to work 120 jobs in February but actually worked 124 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 (l.e., zero variance). Input all amounts as positive values. AirQual Test Corporation Flexible Budget Performance Report Jobs For the Month Ended February 28 Actual Results Revenue and Spending Variances Flexible Budget Activity Variances Planning Budget 124 $ 30,490 Revenue Expenses: Technician wages 8,450 Mobile lab operating expenses 8,640 Office expenses 2,930 Advertising expenses 1,640 Insurance 2,880 Miscellaneous expenses 375 Total expenses 24,915 Net operating income $ 5,575
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