Homework Help is Here – Start Your Trial Now!
Business
Accounting
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.)

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.)

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter1: Introduction To Cost Accounting
Section: Chapter Questions
Problem 12P: Bangor Products Co. obtained the following information from its records for April: Required: 1....
See similar textbooks
icon
Related questions
icon
Concept explainers
Question
AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Results Planning Budget Flexible Budget Jobs 138 Revenue $ 3,650 Expenses: Technician wages 8,350 Mobile lab operating expenses 8,670 Office expenses 2,740 Advertising expenses 1,670 Insurance 2,880 Miscellaneous expenses 535 Total expense 24,845 Net operating income 8,805
Transcribed Image Text:AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Results Planning Budget Flexible Budget Jobs 138 Revenue $ 3,650 Expenses: Technician wages 8,350 Mobile lab operating expenses 8,670 Office expenses 2,740 Advertising expenses 1,670 Insurance 2,880 Miscellaneous expenses 535 Total expense 24,845 Net operating income 8,805
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: rixed Component per Month Variable Actual Total for February $ 33,650 $ 8,350 $ 8,670 $ 2,740 $ 1,670 $ 2,880 $ 535 Component per Job $ 280 Revenue Technician wages Mobile lab operating expenses office expenses Advertiaing expenses Insurance $ 8,500 $ 4,800 $ 2,500 $1,600 $ 2,880 $ 970 $ 31 Mincellaneous expense $ 2 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,800 plus $31 per job, and the actual mobile lab operating expenses for February were $8,670. The company expected to work 130 jobs in February, but actually worked 138 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.)
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: rixed Component per Month Variable Actual Total for February $ 33,650 $ 8,350 $ 8,670 $ 2,740 $ 1,670 $ 2,880 $ 535 Component per Job $ 280 Revenue Technician wages Mobile lab operating expenses office expenses Advertiaing expenses Insurance $ 8,500 $ 4,800 $ 2,500 $1,600 $ 2,880 $ 970 $ 31 Mincellaneous expense $ 2 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,800 plus $31 per job, and the actual mobile lab operating expenses for February were $8,670. The company expected to work 130 jobs in February, but actually worked 138 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.)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Budgeting
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS