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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: Fixed Component per Month Variable Component per Job Actual Total for February Revenue $ 278 $ 30,610 Technician wages $ 8,100 $ 7,950 Mobile lab operating expenses $ 4,500 $ 33 $ 8,300 Office expenses $ 2,600 $ 2 $ 2,690 Advertising expenses $ 1,590 $ 1,660 Insurance $ 2,860 Miscellaneous expenses $ 920 $ 2 $ 2,860 $ 465 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,500 plus $33 per job, and the actual mobile lab operating expenses for February were $8,300. The company expected to work 120 jobs in February but actually worked 130 jobs. Required: Prepare a flexible budget performance report for February. Note: 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. AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Jobs Actual Results 130 $ 30,610 Revenue Expenses: Technician wages 7,950 Mobile lab operating expenses 8,300 Office expenses 2,690 Advertising expenses 1,660 Insurance 2,860 Miscellaneous expenses Total expenses Net operating income 465 23,925 $ 6,685 Flexible Planning Budget Budget

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: Fixed Component per Month Variable Component per Job Actual Total for February Revenue $ 278 $ 30,610 Technician wages $ 8,100 $ 7,950 Mobile lab operating expenses $ 4,500 $ 33 $ 8,300 Office expenses $ 2,600 $ 2 $ 2,690 Advertising expenses $ 1,590 $ 1,660 Insurance $ 2,860 Miscellaneous expenses $ 920 $ 2 $ 2,860 $ 465 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,500 plus $33 per job, and the actual mobile lab operating expenses for February were $8,300. The company expected to work 120 jobs in February but actually worked 130 jobs. Required: Prepare a flexible budget performance report for February. Note: 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. AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Jobs Actual Results 130 $ 30,610 Revenue Expenses: Technician wages 7,950 Mobile lab operating expenses 8,300 Office expenses 2,690 Advertising expenses 1,660 Insurance 2,860 Miscellaneous expenses Total expenses Net operating income 465 23,925 $ 6,685 Flexible Planning Budget 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 provided the following cost formulas and actual results for the month of February: Fixed Component per Month Variable Component Revenue per Job $ 278 Actual Total for February $ 30,610 Technician wages $ 8,100 $ 7,950 Mobile lab operating expenses $ 4,500 $ 33 $ 8,300 Office expenses $ 2,600 $ 2 $ 2,690 Advertising expenses $ 1,590 $ 1,660 Insurance $ 2,860 Miscellaneous expenses $ 920 $ 2 $ 2,860 $ 465 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,500 plus $33 per job, and the actual mobile lab operating expenses for February were $8,300. The company expected to work 120 jobs in February but actually worked 130 jobs. Required: Prepare a flexible budget performance report for February. Note: 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. AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Jobs Actual Results 130 $ 30,610 Revenue Expenses: Technician wages 7,950 Mobile lab operating expenses 8,300 Office expenses 2,690 Advertising expenses 1,660 Insurance 2,860 Miscellaneous expenses 465 Total expenses 23,925 Net operating income $ 6,685 Flexible Planning Budget Budget
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: Fixed Component per Month Variable Component Revenue per Job $ 278 Actual Total for February $ 30,610 Technician wages $ 8,100 $ 7,950 Mobile lab operating expenses $ 4,500 $ 33 $ 8,300 Office expenses $ 2,600 $ 2 $ 2,690 Advertising expenses $ 1,590 $ 1,660 Insurance $ 2,860 Miscellaneous expenses $ 920 $ 2 $ 2,860 $ 465 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,500 plus $33 per job, and the actual mobile lab operating expenses for February were $8,300. The company expected to work 120 jobs in February but actually worked 130 jobs. Required: Prepare a flexible budget performance report for February. Note: 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. AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Jobs Actual Results 130 $ 30,610 Revenue Expenses: Technician wages 7,950 Mobile lab operating expenses 8,300 Office expenses 2,690 Advertising expenses 1,660 Insurance 2,860 Miscellaneous expenses 465 Total expenses 23,925 Net operating income $ 6,685 Flexible Planning Budget Budget
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