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AirQual Test Corporation provides on-site air quality testing services. The company provided the following cost formulas and actual results for the month of February: Revenue
AirQual Test Corporation provides on-site air quality testing services. The company 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 Fixed Component per Month $ 8,400 $ 5,000 $ 2,700 $ 1,590 $ 2,860 $ 970 Variable Component per Job $ 277 $32 $ 3 $ 1 Actual Total for February $ 36,030 $ 8,250 $ 9,320 $ 2,970 $ 1,660 $ 2,860 $ 415 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 $9,320. The company expected to work 140 jobs in February but actually worked 148 jobs. Required: Prepare a flexible budget performance report for February. Note: 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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