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2 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
2 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: 14 points Fixed Component per Month Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses $ 8,300 $ 4,808 $ 2,200 $ 1,578 $ 2,870 $ 928 Variable Actual Total Component per Job for February $ 280 $ 36,450 $ 8,150 $ 33 $ 9,262 $ 3 $ 2,470 $ 1,640 $ 2,870 $ 2 $ 505 eBook Print References The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,800 plus $33 per job, and the actual mobile lab operating expenses for February were $9,260. The company expected to work 140 jobs in February, but actually worked 150 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 varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero verlence). Input all amounts as positive values.) AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Results Flexible Budget Planning Budget Jobs 150 Revenue $ 38,450 8,150 Expenses: Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses 9,260 2.470 1,640 2.870 505 Total expense 24,895 Net operating income $ 11,555
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