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
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 Revenue Technician wages Mobile lab operating expenses office expenses Advertising expenses Insurance Miscellaneous expenses Variable Fixed Component Component per Actual Total per Month Job for February $ 277 $ 33,260 $ 8,500 $ 8,350 $ 5,000 $32 $ 9,000 $ 2.500 $ 3 $ 2,740 $ 1,590 $ 1,660 $ 2.900 $ 2,900 5 950 $ 515 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $5,000 plus $32 per job, and the actual mobile lab operating expenses for February were $9,000. The company expected to work 130 jobs in February, but actually worked 132 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.) 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.) AlrQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Results Flexible Budget Planning Budget Jobs 132 $ 33,260 8,350 9,000 Revenue Expenses Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Total expense Net operating income 2,740 1,660 2.900 515 25,165 $ 8,095

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

Cost Accounting

Authors: Mark Lee Inman

1st Edition

0434908304, 9780434908301

More Books

Students also viewed these Accounting questions

Question

Garvin [Gar84] describes five different views of quality.

Answered: 1 week ago