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 Job Revenue Technician wagen Mobile lab operating expenses office expenses Advertising expenses Insurance Miscellaneous expenses Variable Fixed Component Component per per Month $ 279 $ 8.500 $ 4,500 $ 31 $ 2,700 $1,570 $ 2,870 $ 940 Actual Total for February $ 30,730 $ 8,350 $ 8,060 $ 2,910 $ 1,640 $ 2,870 $ 365 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,500 plus $31 per job, and the actual mobile lab operating expenses for February were $8,060. The company expected to work 120 jobs in February, but actually worked 130 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.) 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 ne 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 130 $ 30,730 Revenue Expenses: Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance 8,350 8,060 2,910 1,640 2,870 365 24,195 $ 6,535 Miscellaneous expenses Total expense Net operating income Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost drivers-the number of cruises and the number of passengers-that it uses in its budgeting and performance reports. The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 88 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Cost per Cruise $ 479.00 Cost per Passenger $ 3.00 Vessel operating costs Advertising Administrative costs Insurance Fixed Cost per Month $ 6,300 $ 2,600 $ 5,400 $ 3,900 $ 35.00 $ 1.50 For example, vessel operating costs should be $6,300 per month plus $479.00 per cruise plus $3.00 per passenger. The company's sales should average $31.00 per passenger. In July, the company provided 58 cruises for a total of 3,150 passengers, Required: Prepare the company's flexible budget for July. Alyeskl Tours Flexible Budget For the Month Ended July 31 Revenue Expenses Vessel operating costs Advertising Administrative costs Insurance Total expense Net operating income 0 0 $ PRAV 1 of 3 Next >
