Question
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:
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 | $ | 277 | $ | 36,030 | |||||
Technician wages | $ | 8,100 | $ | 7,950 | |||||
Mobile lab operating expenses | $ | 4,700 | $ | 31 | $ | 8,880 | |||
Office expenses | $ | 2,400 | $ | 2 | $ | 2,530 | |||
Advertising expenses | $ | 1,610 | $ | 1,680 | |||||
Insurance | $ | 2,860 | $ | 2,860 | |||||
Miscellaneous expenses | $ | 940 | $ | 2 | $ | 525 | |||
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus $31 per job, and the actual mobile lab operating expenses for February were $8,880. The company expected to work 140 jobs in February, but actually worked 148 jobs.
Required:
Prepare a flexible budget performance report showing AirQual Test Corporations revenue and spending variances and activity variances for February.
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