Check my work 1 1 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: 16.66 points Fixed Component per Month Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Variable Component per Actual Total Job for February $ 278 $36,170 $ 7,950 $ 30 $ 9,040 $ 3 $ 2,670 $ 1,640 $ 2,860 $ 1 $ 385 $ 8,100 $ 5,000 $ 2,400 $ 1,570 $ 2,860 $ 940 eBook Print The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $5,000 plus $30 per job, and the actual mobile lab operating expenses for February were $9,040. The company expected to work 140 jobs in February, but actually worked 146 jobs. References 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 Budget Planning Budget Jobs 146 Revenue $ 36,170 Expenses: Technician wages 7.950 Check my work 1 Miscellaneous expenses $ 940 $ 1 $ 385 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $5,000 plus $30 per job, and the actual mobile lab operating expenses for February were $9,040. The company expected to work 140 jobs in February, but actually worked 146 jobs. 16.66 points Required: Prepare a flexible budget performance report showing Air Qual 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.) eBook Print AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 References Actual Results Flexible Budget Planning Budget Jobs 146 Revenue $ 36,170 7,950 9,040 Expenses: Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses 2,670 1,640 2,860 385 Total expense 24,545 Net operating income $ 11,625 Check my work 2 Wyckam Manufacturing Inc. has provided the following estimates concerning its manufacturing costs: 16.66 points Fixed Cost per Month Cost per Machine-Hour $5.40 $ 42,800 Skipped Direct materials Direct labor Supplies Utilities Depreciation Insurance $ 0.30 $ 0.10 $ 1,000 $ 15,300 $ 11,400 eBook For example, utilities should be $1,000 per month plus $0.10 per machine-hour. The company expects to work 4,400 machine- hours in June. Note that the company's direct labor is a fixed cost. Hint Required: Prepare the company's planning budget for June. Print Wyckam Manufacturing Inc. Planning Budget for Manufacturing Costs For the Month Ended June 30 References Direct materials Direct labor Supplies Utilities Depreciation Insurance Total manufacturing cost $ 0 Check my work 3 Cost Formulas $2309 $609 $389 $149 $630 + $119 $1,850 + $40 $3,460 + $39 Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration 16.68 points eBook Required: 2. Complete the flexible budget performance report for the school for July. (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.) Print TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 References Actual Flexible Budget Results 180 Planning Budget 175 Lessons Revenue $ 41,290 $ 40,250 10,500 Expenses: Instructor wages Aircraft depreciation Fuel 6,650 10,645 6,840 3,090 2,700 2,470 2,450 Maintenance Ground facility expenses Administration 3,885 2,555 2,550 3,985 28,690 11,560 Total expense 29,630 Net operating income $ 11,660 Check my work 3 TipTop Flight School offers flying lessons at a small municipal airport. The school's owner and manager has been attempting to evaluate performance and control costs using a variance report that compares the planning budget to actual results. A recent variance report appears below: 16.68 points TipTop Flight School Variance Report For the Month Ended July 31 Actual Planning Results Budget 180 175 Variances Lessons eBook $ 41,290 $ 40,250 $1,040 F Print Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 10,645 10,500 6,840 6,65% 3,090 2,450 2,700 2,555 2,470 2,550 3,885 3,985 29,630 28,690 $ 11,660 $ 11,560 145 U 190 U 640 U 145 U 80 F 100 F 940 U 100 F References After several months of using these reports, the owner has become frustrated. For example, she is quite confident that instructor wages were very tightly controlled in July, but the report shows an unfavorable variance. The planning budget was developed using the following formulas, where is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $2309 $609 $389 $149 $630 + $119 $1,850 + $49 $3,460 + $39 Required