AirQual Test Corporation provides onsite air quality testing

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 ComponentVariableActual Total per Month Component per Job for February Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses s 33,268 $ 8,158 8,870 s 2,740 S 1,686 $ 2,850 $505 $ 277 $8,3 10 5,000 2,500 $ 1,610 $ 2,850 $ 940 The company uses the number of jobs as its measure of activity. For example le lab operating expenses for February were $8,870. The company expected to work 130 jobs in February, but actually worked 132 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 unfovorable, and \"None for no effect (i.e., zero variance). Input all emounts as positive values.) Air-Qual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Flexible Planning Bud Prev 27 of 28 Next > e w] Entry Level Financial ? EXAM 4 (FINAL)-CH wnloads AVG AntiVirus

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) 132 132 130 Revenue ($277.00q) 33260 3304 F 36564 554 F 36010 Technician wages 8150 150 U 8300 0 - 8300 Mobile lab operating expenses 5000+31q 8870 222 F 9092 62 U 9030 Office expenses 2500+3q 2740 156 U 2896 6 U 2890 Advertising expenses 1680 70 U 1610 0 - 1610 Insurance 2850 0 - 2850 0 - 2850 Miscellaneous expenses 940+2q 505 699 F 1204 4 U 1200 Total expense 24795 1297 U 25952 72 U 25880 Net operating income 8465 2007 F 10612 482 F 10130