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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 per Job Actual Total for February Revenue $ 280 $ 30,850 Technician wages $ 8,500 $ 8,350 Mobile lab operating expenses $ 4,700 $ 32 $ 8,380 Office expenses $ 2,700 $ 2 $ 2,790 Advertising expenses $ 1,620 $ 1,690 Insurance $ 2,880 Miscellaneous expenses $ 920 $ 1 $ 2,880 $ 345 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus $32 per job, and the actual mobile lab operating expenses for February were $8,380. The company expected to work 120 jobs in February but actually worked 126 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. AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Jobs Actual Results 126 $ 30,850 Revenue Expenses: Technician wages 8,350 Mobile lab operating expenses 8,380 Office expenses 2,790 Advertising expenses 1,690 Insurance 2,880 Miscellaneous expenses Total expenses Net operating income $ 6,415 345 24,435 Flexible Planning Budget Budget

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 per Job Actual Total for February Revenue $ 280 $ 30,850 Technician wages $ 8,500 $ 8,350 Mobile lab operating expenses $ 4,700 $ 32 $ 8,380 Office expenses $ 2,700 $ 2 $ 2,790 Advertising expenses $ 1,620 $ 1,690 Insurance $ 2,880 Miscellaneous expenses $ 920 $ 1 $ 2,880 $ 345 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus $32 per job, and the actual mobile lab operating expenses for February were $8,380. The company expected to work 120 jobs in February but actually worked 126 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. AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Jobs Actual Results 126 $ 30,850 Revenue Expenses: Technician wages 8,350 Mobile lab operating expenses 8,380 Office expenses 2,790 Advertising expenses 1,690 Insurance 2,880 Miscellaneous expenses Total expenses Net operating income $ 6,415 345 24,435 Flexible Planning Budget Budget

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 $ 280 $ 30,850 Technician wages $ 8,500 $ 8,350 Mobile lab operating expenses $ 4,700 $ 32 $ 8,380 Office expenses $ 2,700 $ 2 $ 2,790 Advertising expenses $ 1,620 $ 1,690 Insurance $ 2,880 Miscellaneous expenses $ 920 $ 1 $ 2,880 $ 345 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus $32 per job, and the actual mobile lab operating expenses for February were $8,380. The company expected to work 120 jobs in February but actually worked 126 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. AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Jobs Actual Results 126 $ 30,850 Revenue Expenses: Technician wages 8,350 Mobile lab operating expenses 8,380 Office expenses 2,790 Advertising expenses 1,690 Insurance 2,880 Miscellaneous expenses 345 Total expenses 24,435 Net operating income $ 6,415 Flexible Planning Budget Budget
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 $ 280 $ 30,850 Technician wages $ 8,500 $ 8,350 Mobile lab operating expenses $ 4,700 $ 32 $ 8,380 Office expenses $ 2,700 $ 2 $ 2,790 Advertising expenses $ 1,620 $ 1,690 Insurance $ 2,880 Miscellaneous expenses $ 920 $ 1 $ 2,880 $ 345 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus $32 per job, and the actual mobile lab operating expenses for February were $8,380. The company expected to work 120 jobs in February but actually worked 126 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. AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Jobs Actual Results 126 $ 30,850 Revenue Expenses: Technician wages 8,350 Mobile lab operating expenses 8,380 Office expenses 2,790 Advertising expenses 1,690 Insurance 2,880 Miscellaneous expenses 345 Total expenses 24,435 Net operating income $ 6,415 Flexible Planning Budget Budget
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