AirQual Test Corporation provides on-site air quality testing services. The company has provided the following...
90.2K
Verified Solution
Link Copied!
Question
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:
Fixed Component per Month
Variable Component per Job
Actual Total for February
Revenue
$ 277
$ 36,030
Technician wages
$ 8,000
$ 7,850
Mobile lab operating expenses
$ 4,900
$ 31
$ 9,080
Office expenses
$ 2,200
$ 3
$ 2,470
Advertising expenses
$ 1,600
$ 1,670
Insurance
$ 2,860
$ 2,860
Miscellaneous expenses
$ 970
$ 1
$ 415
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $31 per job, and the actual mobile lab operating expenses for February were $9,080. The company expected to work 140 jobs in February, but actually worked 150 jobs.
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.)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
