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 of February

image text in transcribed

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 Variable Fixed Component Component per Actual Total per Month Job $280 Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses 8,500 $ 4,700 2,700 1,560 $ 2,860 $ 950 for February 39,250 $ 8,350 $ 9,790 $ 2,850 $ 1,630 $ 2,860 $ 405 $ 35 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus $35 per job, and the actual mobile lab operating expenses for February were $9,790. The company expected to work 150 jobs in February, but actually worked 152 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 Report For the Month Ended February 28 Actual Results Flexible Budget Planning Budget Jobs 152 Revenue $ 39,250 Expenses Technician wages Mobile lab operating enses Office expenses Advertising expenses Insurance Mierallanonie avnaneoe 8,350 9,790 2,850 1,630 2,860

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

Step: 3

blur-text-image

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

Essays On The Quality Of Audited Financial Statements

Authors: Ulf Mohrmann

1st Edition

3832541853, 978-3832541859

More Books

Students also viewed these Accounting questions

Question

Why is intuition still an important aspect of decision making?

Answered: 1 week ago

Question

1. Explain how business strategy affects HR strategy.

Answered: 1 week ago