AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost...

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Accounting

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 $ 278 $ 36,170
Technician wages $ 8,500 $ 8,350
Mobile lab operating expenses $ 4,900 $ 32 $ 9,220
Office expenses $ 2,600 $ 3 $ 2,870
Advertising expenses $ 1,600 $ 1,670
Insurance $ 2,880 $ 2,880
Miscellaneous expenses $ 960 $ 2 $ 545
The company uses the number of jobs as its measure of activity.For example, mobile lab operating expenses should be $4,900 plus$32 per job, and the actual mobile lab operating expenses forFebruary were $9,220. The company expected to work 140 jobs inFebruary, but actually worked 142 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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AirQual TestFlexible Budget ReportFor the month ended February 28ActualresultsRevenue andSpending See Answer

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Transcribed Image Text

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 Componentper MonthVariableComponent per JobActual Totalfor FebruaryRevenue$278$36,170Technician wages$8,500$8,350Mobile lab operating expenses$4,900$32$9,220Office expenses$2,600$3$2,870Advertising expenses$1,600$1,670Insurance$2,880$2,880Miscellaneous expenses$960$2$545The company uses the number of jobs as its measure of activity.For example, mobile lab operating expenses should be $4,900 plus$32 per job, and the actual mobile lab operating expenses forFebruary were $9,220. The company expected to work 140 jobs inFebruary, but actually worked 142 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.)

	Fixed Component per Month		Variable Component per Job		Actual Total for February
Revenue			$	278	$	36,170
Technician wages	$	8,500			$	8,350
Mobile lab operating expenses	$	4,900	$	32	$	9,220
Office expenses	$	2,600	$	3	$	2,870
Advertising expenses	$	1,600			$	1,670
Insurance	$	2,880			$	2,880
Miscellaneous expenses	$	960	$	2	$	545