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Ook 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 Fixed Component per Month Revenue Variable Component per Job $ 275 Actual Total for February $ 33,000 Technician wages $ 8,500 $ 8,350 Mobile lab operating expenses $ 4,900 $ 30 $ 8,640 Office expenses $ 2,700 $ 3 $ 2,940 Advertising expenses $ 1,610 $ 1,680 Insurance $ 2,870 $ 2,870 Miscellaneous expenses $ 950 $ 2 $ 515 rint The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $30 per job, and the actual mobile lab operating expenses for February were $8,640. The company expected to work 130 jobs in February, but actually worked 138 jobs. 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.) AirQual Test Corporation Jobs Revenue Flexible Budget Performance Report For the Month Ended February 28 Actual Results Flexible Planning Budget Budget 138 $ 33,000 Expenses: Technician wages 8,350 Mobile lab operating 8,640 expenses Office expenses 2,940 Advertising expenses 1,680 Insurance 2,870 Miscellaneous expenses 515 Total expense 24,995 Net operating income $ 8,005

Ook 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 Fixed Component per Month Revenue Variable Component per Job $ 275 Actual Total for February $ 33,000 Technician wages $ 8,500 $ 8,350 Mobile lab operating expenses $ 4,900 $ 30 $ 8,640 Office expenses $ 2,700 $ 3 $ 2,940 Advertising expenses $ 1,610 $ 1,680 Insurance $ 2,870 $ 2,870 Miscellaneous expenses $ 950 $ 2 $ 515 rint The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $30 per job, and the actual mobile lab operating expenses for February were $8,640. The company expected to work 130 jobs in February, but actually worked 138 jobs. 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.) AirQual Test Corporation Jobs Revenue Flexible Budget Performance Report For the Month Ended February 28 Actual Results Flexible Planning Budget Budget 138 $ 33,000 Expenses: Technician wages 8,350 Mobile lab operating 8,640 expenses Office expenses 2,940 Advertising expenses 1,680 Insurance 2,870 Miscellaneous expenses 515 Total expense 24,995 Net operating income $ 8,005

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 64E: Use the following information for Exercises 9-63 and 9-64: Palladium Inc. produces a variety of...
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Ook 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 Fixed Component per Month Revenue Variable Component per Job $ 275 Actual Total for February $ 33,000 Technician wages $ 8,500 $ 8,350 Mobile lab operating expenses $ 4,900 $ 30 $ 8,640 Office expenses $ 2,700 $ 3 $ 2,940 Advertising expenses $ 1,610 $ 1,680 Insurance $ 2,870 $ 2,870 Miscellaneous expenses $ 950 $ 2 $ 515 rint The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $30 per job, and the actual mobile lab operating expenses for February were $8,640. The company expected to work 130 jobs in February, but actually worked 138 jobs. 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.) AirQual Test Corporation Jobs Revenue Flexible Budget Performance Report For the Month Ended February 28 Actual Results Flexible Planning Budget Budget 138 $ 33,000 Expenses: Technician wages 8,350 Mobile lab operating 8,640 expenses Office expenses 2,940 Advertising expenses 1,680 Insurance 2,870 Miscellaneous expenses 515 Total expense 24,995 Net operating income $ 8,005
Transcribed Image Text:Ook 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 Fixed Component per Month Revenue Variable Component per Job $ 275 Actual Total for February $ 33,000 Technician wages $ 8,500 $ 8,350 Mobile lab operating expenses $ 4,900 $ 30 $ 8,640 Office expenses $ 2,700 $ 3 $ 2,940 Advertising expenses $ 1,610 $ 1,680 Insurance $ 2,870 $ 2,870 Miscellaneous expenses $ 950 $ 2 $ 515 rint The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $30 per job, and the actual mobile lab operating expenses for February were $8,640. The company expected to work 130 jobs in February, but actually worked 138 jobs. 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.) AirQual Test Corporation Jobs Revenue Flexible Budget Performance Report For the Month Ended February 28 Actual Results Flexible Planning Budget Budget 138 $ 33,000 Expenses: Technician wages 8,350 Mobile lab operating 8,640 expenses Office expenses 2,940 Advertising expenses 1,680 Insurance 2,870 Miscellaneous expenses 515 Total expense 24,995 Net operating income $ 8,005
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