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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 Revenue Technician wages Mobile lab operating expenses office expenses Advertising expenses Insurance Miscellaneous expenses Jobs Revenue Expenses: Technician wages Mobile lab operating expenses Office expenses Fixed Component per Month Advertising expenses Insurance $ 8,300 $4,900 $ 2,800 $ 1,570 $ 2,880 $ 930 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $34 per job, and the actual mobile lab operating expenses for February were $8,820. The company expected to work 120 jobs in February, but actually worked 128 jobs. Miscellaneous expenses Total expense Net operating income 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 varience). Input all amounts as positive values.) Actual Results 128 Variable Actual Total Component per Job for February $ 276 $ 30,370 $ 30,370 $ 34 $ 3 8,150 8,820 3,010 1.640 2,880 475 S 2 24,975 $ 5,395 $ 8,150 $ 8,820 $ 3,010 $ 1,640 2,880 475 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Flexible Budget $ S Planning Budget

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 Revenue Technician wages Mobile lab operating expenses office expenses Advertising expenses Insurance Miscellaneous expenses Jobs Revenue Expenses: Technician wages Mobile lab operating expenses Office expenses Fixed Component per Month Advertising expenses Insurance $ 8,300 $4,900 $ 2,800 $ 1,570 $ 2,880 $ 930 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $34 per job, and the actual mobile lab operating expenses for February were $8,820. The company expected to work 120 jobs in February, but actually worked 128 jobs. Miscellaneous expenses Total expense Net operating income 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 varience). Input all amounts as positive values.) Actual Results 128 Variable Actual Total Component per Job for February $ 276 $ 30,370 $ 30,370 $ 34 $ 3 8,150 8,820 3,010 1.640 2,880 475 S 2 24,975 $ 5,395 $ 8,150 $ 8,820 $ 3,010 $ 1,640 2,880 475 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Flexible Budget $ S Planning Budget

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...
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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 Revenue Technician wages Mobile lab operating expenses office expenses Advertising expenses Insurance Miscellaneous expenses Jobs Revenue Expenses: Technician wages Mobile lab operating expenses The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $34 per job, and the actual mobile lab operating expenses for February were $8,820. The company expected to work 120 jobs in February, but actually worked 128 jobs. Office expenses Fixed Component per Month 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.) Advertising expenses Insurance $ 8,300 $ 4,900 $ 2,800 $ 1,570 $ 2,880 $ 930 Miscellaneous expenses Total expense Net operating income Actual Results 128 $ 30,370 Variable Actual Total Component per Job for February $ 276 $ 30,370 $ 8,150 $ 8,820 3,010 1,640 2,880 475 8,150 8,820 3,010 1.640 $34 $3 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Flexible Budget 2,880 475 $ 2 24,975 $ 5,395 $ $ $ $ Planning Budget
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 Revenue Technician wages Mobile lab operating expenses office expenses Advertising expenses Insurance Miscellaneous expenses Jobs Revenue Expenses: Technician wages Mobile lab operating expenses The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $34 per job, and the actual mobile lab operating expenses for February were $8,820. The company expected to work 120 jobs in February, but actually worked 128 jobs. Office expenses Fixed Component per Month 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.) Advertising expenses Insurance $ 8,300 $ 4,900 $ 2,800 $ 1,570 $ 2,880 $ 930 Miscellaneous expenses Total expense Net operating income Actual Results 128 $ 30,370 Variable Actual Total Component per Job for February $ 276 $ 30,370 $ 8,150 $ 8,820 3,010 1,640 2,880 475 8,150 8,820 3,010 1.640 $34 $3 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Flexible Budget 2,880 475 $ 2 24,975 $ 5,395 $ $ $ $ Planning Budget
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