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AirQual Test Corporation provides on-site air quality testing services. The company 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 Variable Component Component per Actual Total per Month Job for February $ 277 $ 30,490 Advertising expenses Insurance Miscellaneous expenses Total expenses Net operating income $ 8,300 $ 4,900 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 for February were $8.580. The company expected to work 120 jobs in February but actually worked 130 jobs. $ 2,800 $ 1,570 $ 2,880 $ 950 Required: Prepare a flexible budget performance report for February. Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values. $ Actual Results 130 $ 30,490 $ 32 $2 $ 1 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 8,150 8,580 2,890 1,640 2.880 375 24,515 5,975 Revenue and Spending Variances U F $ 8,150 $ 8,580 $ 2,890 $ 1,640 $ 2,880 $ 375 F F U None F F U Flexible Budget 130 $ 36,010 8,150 9,060 3,060 1,570 2,880 123,500 Activity Variances F None U U None None U U F Planning Budget 120 S 33,240 8,150 1,570 2,880 123,500

AirQual Test Corporation provides on-site air quality testing services. The company 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 Variable Component Component per Actual Total per Month Job for February $ 277 $ 30,490 Advertising expenses Insurance Miscellaneous expenses Total expenses Net operating income $ 8,300 $ 4,900 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 for February were $8.580. The company expected to work 120 jobs in February but actually worked 130 jobs. $ 2,800 $ 1,570 $ 2,880 $ 950 Required: Prepare a flexible budget performance report for February. Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values. $ Actual Results 130 $ 30,490 $ 32 $2 $ 1 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 8,150 8,580 2,890 1,640 2.880 375 24,515 5,975 Revenue and Spending Variances U F $ 8,150 $ 8,580 $ 2,890 $ 1,640 $ 2,880 $ 375 F F U None F F U Flexible Budget 130 $ 36,010 8,150 9,060 3,060 1,570 2,880 123,500 Activity Variances F None U U None None U U F Planning Budget 120 S 33,240 8,150 1,570 2,880 123,500

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 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: Fixed Variable Component Component per Actual Total per Month Job for February $ 277 $ 30,490 $ 8,150 $ 8,580 $ 2,890 $ 1,640 $2,880 $375 Technician wages Mobile lab operating expenses Office expenses $1 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 for February were $8,580. The company expected to work 120 jobs in February but actually worked 130 jobs. Advertising expenses Insurance Miscellaneous expenses Total expenses Net operating income $ 8,300 $ 4,900 Required: Prepare a flexible budget performance report for February. Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as positive values. $ 2,800 $ 1,570 $ 2,880 $ 950 $ Actual Results AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 130 $ 30,490 8,150 8,580 $32 $2 2,890 1,640 2,880 375 24,515 5,975 Revenue and Spending Variances U F F IF U None F F U Flexible Budget 130 $ 36,010 8,150 9,060 3,060 1,570 2,880 123,500 Activity Variances F None U U None None U F Planning Budget 120 S 33,240 8,150 1,570 2,880 123,500
Transcribed Image Text:AirQual Test Corporation provides on-site air quality testing services. The company 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: Fixed Variable Component Component per Actual Total per Month Job for February $ 277 $ 30,490 $ 8,150 $ 8,580 $ 2,890 $ 1,640 $2,880 $375 Technician wages Mobile lab operating expenses Office expenses $1 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 for February were $8,580. The company expected to work 120 jobs in February but actually worked 130 jobs. Advertising expenses Insurance Miscellaneous expenses Total expenses Net operating income $ 8,300 $ 4,900 Required: Prepare a flexible budget performance report for February. Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as positive values. $ 2,800 $ 1,570 $ 2,880 $ 950 $ Actual Results AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 130 $ 30,490 8,150 8,580 $32 $2 2,890 1,640 2,880 375 24,515 5,975 Revenue and Spending Variances U F F IF U None F F U Flexible Budget 130 $ 36,010 8,150 9,060 3,060 1,570 2,880 123,500 Activity Variances F None U U None None U F Planning Budget 120 S 33,240 8,150 1,570 2,880 123,500
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