Question
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following data concerning its operations: Fixed Component per Month Variable Component
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following data concerning its operations: |
Fixed Component per Month | Variable Component per Job | Actual Total for February | ||||
Revenue | $ | 276 | $ | 38,650 | ||
Technician wages | $ | 8,600 | $ | 8,450 | ||
Mobile lab operating expenses | $ | 4,600 | $ | 29 | $ | 9,110 |
Office expenses | $ | 2,400 | $ | 2 | $ | 2,550 |
Advertising expenses | $ | 1,590 | $ | 1,660 | ||
Insurance | $ | 2,880 | $ | 2,880 | ||
Miscellaneous expenses | $ | 950 | $ | 1 | $ | 405 |
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $29 per job, and the actual mobile lab operating expenses for February were $9,110. |
The company expected to work 150 jobs in February, but actually worked 140 jobs. |
AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Revenue and Spending Variances Activity Variances Revenue F U Expenses: Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Total expense Net operating income
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