irQual Test Corporation provides onsite air quality testing

irQual 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: Variable Fixed Component Component per Aotual Total per Month Job 277 Revenue Technician wages Mobile lab operating expenses office expensers Advertising expenses Insurance Miscellaneous expenses $ 8,200 $4,600 $2,800 s 1,600 s 2,850 $920 for February $ 27,720 8,050 s 8,180 2,980 1,670 2,850 s 34 $ 445 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $34 per job, and the actual mobile lab operating expenses for February were $8,180. The company expected to work 110 jobs in February, but actually worked 114 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 Flexible Budget Performance Raport For the Month Ended February 28 Actual Results Flexible Budget Planning Budget Jobs 114 Revenue $ 27.720

Solution

AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Results Revenue and Spending Variances Flexible Budget Activity Variances PlanningBudget Jobs (q) 114 114 110 Revenue ($277.00q) 27720 3858 U 31578 1108 F 30470 Technician wages 8050 150 F 8200 0 8200 Mobile lab operating expenses 4600+34q 8180 296 F 8476 136 U 8340 Office expenses 2800+3q 2980 162 F 3142 12 U 3130 Advertising expenses 1670 70 U 1600 0 1600 Insurance 2850 0 2850 0 2850 Miscellaneous expenses 920+2q 445 703 F 1148 8 U 1140 Total expense 24175 1381 F 25416 156 U 25260 Net operating income 3545 2477 U 6162 952 F 5210