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Can you help me with this managerial accounting problem ---------------------- ------------------ AirQual Test Corporation provides on-site air quality testing services. The company has provided the

Can you help me with this managerial accounting problem

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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 per Month Variable Actual Total Component per Job for February 33,000 8,050 9,090 $ 2,970 1,630 $ 2,870 $275 Revenue S 8,200 $ 4,700 Technician wages Mobile lab operating expenses Office expenses Advertising expenses $ 35 2,600 $1,560 2,870 960 4 Insurance Miscellaneous expenses 2 525 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus $35 per job, and the actual mobile lab operating expenses for February were $9,090. 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 Results Flexible Planning Budget Budget Jobs 136 S 33,000 Revenue Expenses: Technician wages 8,050 Mobile lab operating expenses 9,090 Office expenses 2,970 Advertising expenses 1,630 Insurance 2,870 Miscellaneous expenses 525 Total expense 25,135 7,865 Net operating income You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Actual Cost in March Cost Formula Utilities Maintenance Supplies Indirect labor $16,100$0.20 per machine-hour $38,200$1.40 per machine-hour $0.70 per machine-hour $94,100$1.70 per machine-hour $68,400 $22,900 $67,000 $ 17,300 $137,500 $70,100 Depreciation During March, the company worked 23,000 machine-hours and produced 17,000 units. The company had originally planned to work 25,000 machine-hours during March Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the activity variances for March. (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.) FAB Corporation Activity Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total

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