AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost...
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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: Fixed Component Revenue Technician wages Office expenses Mobile lab operating expenses per Month $ 8,400 $ 4,500 Variable Component per Job Actual Total for February $275 $ 27,500 $ 8,250 Advertising expenses $ 2,300 $ 1,600 - $ 33 $ 7,970 $ 3 $ 2,480 $ 1,670 Insurance Miscellaneous expenses $ 2,860 $ $ 2,860 950 $ 1 $ 365 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,500 plus $33 per job, and the actual mobile lab operating expenses for February were $7,970. The company expected to work 110 jobs in February, but actually worked 118 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 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 Revenue Technician wages Office expenses Mobile lab operating expenses per Month $ 8,400 $ 4,500 Variable Component per Job Actual Total for February $275 $ 27,500 $ 8,250 Advertising expenses $ 2,300 $ 1,600 - $ 33 $ 7,970 $ 3 $ 2,480 $ 1,670 Insurance Miscellaneous expenses $ 2,860 $ $ 2,860 950 $ 1 $ 365 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,500 plus $33 per job, and the actual mobile lab operating expenses for February were $7,970. The company expected to work 110 jobs in February, but actually worked 118 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.)
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