Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

AirQual Test Corporation provides on - site air quality testing services. The company has provided the following cost formulas and actual results for the month

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 Variable Component per Job Actual Total for February
Revenue $ 280 $ 36,450
Technician wages $ 8,200 $ 8,050
Mobile lab operating expenses $ 5,000 $ 31 $ 9,180
Office expenses $ 2,700 $ 4 $ 3,110
Advertising expenses $ 1,570 $ 1,640
Insurance $ 2,900 $ 2,900
Miscellaneous expenses $ 930 $ 1 $ 375
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $5,000 plus $31 per job, and the actual mobile lab operating expenses for February were $9,180. The company expected to work 140 jobs in February, but actually worked 150 jobs.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Concepts And Applications

Authors: K. Fred Skousen, James D. Stice, Earl Kay. Stice, W. Steve Albrecht

7th Edition

0538876255, 978-0538876254

More Books

Students also viewed these Accounting questions

Question

Aware of the role of HRM in multinational corporations.

Answered: 1 week ago