AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost...
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AirQual Test Corporation provides on-site air quality testingservices. The company has provided the following cost formulas andactual results for the month of February:
Fixed Component
per Month Variable
Component per Job Actual Total
for February Revenue $ 277 $ 36,030 Technician wages $ 8,500 $ 8,350 Mobile lab operating expenses $ 4,700 $ 31 $ 8,880 Office expenses $ 2,700 $ 3 $ 2,970 Advertising expenses $ 1,560 $ 1,630 Insurance $ 2,860 $ 2,860 Miscellaneous expenses $ 950 $ 1 $ 395
The company uses the number of jobs as its measure of activity.For example, mobile lab operating expenses should be $4,700 plus$31 per job, and the actual mobile lab operating expenses forFebruary were $8,880. The company expected to work 140 jobs inFebruary, but actually worked 144 jobs.
Required:
Prepare a flexible budget performance report showing AirQualTest Corporation’s revenue and spending variances and activityvariances for February. (Indicate the effect of eachvariance by selecting "F" for favorable, "U" for unfavorable, and"None" for no effect (i.e., zero variance). Input all amounts aspositive values.)
AirQual Test Corporation provides on-site air quality testingservices. The company has provided the following cost formulas andactual results for the month of February:
| Fixed Component per Month | Variable Component per Job | Actual Total for February | |||||||
| Revenue | $ | 277 | $ | 36,030 | |||||
| Technician wages | $ | 8,500 | $ | 8,350 | |||||
| Mobile lab operating expenses | $ | 4,700 | $ | 31 | $ | 8,880 | |||
| Office expenses | $ | 2,700 | $ | 3 | $ | 2,970 | |||
| Advertising expenses | $ | 1,560 | $ | 1,630 | |||||
| Insurance | $ | 2,860 | $ | 2,860 | |||||
| Miscellaneous expenses | $ | 950 | $ | 1 | $ | 395 | |||
The company uses the number of jobs as its measure of activity.For example, mobile lab operating expenses should be $4,700 plus$31 per job, and the actual mobile lab operating expenses forFebruary were $8,880. The company expected to work 140 jobs inFebruary, but actually worked 144 jobs.
Required:
Prepare a flexible budget performance report showing AirQualTest Corporation’s revenue and spending variances and activityvariances for February. (Indicate the effect of eachvariance by selecting "F" for favorable, "U" for unfavorable, and"None" for no effect (i.e., zero variance). Input all amounts aspositive values.)
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