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: Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Variable Fixed Component Component per per Month Job $ 279 $ 8,400 $ 4,800 $ 32 $ 2,600 $ 3 $ 1,600 $ 2,860 $ 930 $ 2 Actual Total for February $ 33,520 $ 8,250 $ 8,800 $ 2,840 $ 1,670 $ 2,860 $ 495 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,800 plus $32 per job, and the actual mobile lab operating expenses for February were $8,800. 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 Actual Flexible Results Budget Planning Budget Jobs 136 Revenue $ 33,520 8,250 8,800 Expenses: Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses 2,840 1,670 2,860 495 Total expense 24,915 8,605 Net operating income $

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

Accounting Ethics

Authors: Ronald F. Duska, Brenda Shay Duska, Kenneth Wm. Kury

3rd Edition

1119118786, 9781119118787

More Books

Students also viewed these Accounting questions

Question

3. Explain how to conduct an appraisal feedback interview.

Answered: 1 week ago

Question

1. Answer the question, Who should do the appraising?

Answered: 1 week ago