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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 Variable Actual Total Component per Job for February 33,390 7,850 $ 8,860 2,940 $ 1,640 2,880 per Month $ 278 Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses S 8,000 4,600 2,700 1,570 2,880 S 34 Insurance Miscellaneous expenses 960 2 525 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $34 per job, and the actual mobile lab operating expenses for February were $8,860. The company expected to work 130 jobs in February, but actually worked 136 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 Flexible Budget Actual Planning Budget Results Jobs 136 33,390 Revenue Expenses: Technician wages 7,850 Mobile lab operating expenses 8,860 Office expenses 2,940 Advertising expenses 1,640 Insurance 2,880 Miscellaneous expenses 525 Total expense 24,695 8,695 Net operating income
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