Exercise 9-17 Flexible Budget Performance Report (L09-1, LO9-2, LO9-3, L09-4) 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 Variable Actual Total per Month Component per ob for February Revenue 5.275 $ 38,500 Technician wages $ 8,400 $3,250 Mobile lab operating expenses $ 5,000 $10,090 office expenses $ 2,500 $3 $ 2.500 Advertising expenses $1,600 $1,670 Insurance % 2,890 $ 2,890 Miscellaneous expenses $ 920 $ 1 $ 375 The company uses the number of jobs as its measure of activity For example, mobile lab operating expenses should be $5,000 plus $35 per job, and the actual mobile lab operating expenses for February were $10,090 The company expected to work 150 jobs in February, but actually worked 156 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 (.e. zero variance), Input all amounts as positive values.) Air Qual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Flexible Results Budget 156 Planning Budget Jobs $ 38,500 Activity Variances Revenue and Spending Variances Revenue Expenses Technician wages Moble lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Total expense Net operating income 8.250 10.090 2 800 1.670 2.890 375 26,075 $ 12,425 Exercise 9-17 Flexible Budget Performance Report (L09-1, LO9-2, LO9-3, L09-4) 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 Variable Actual Total per Month Component per ob for February Revenue 5.275 $ 38,500 Technician wages $ 8,400 $3,250 Mobile lab operating expenses $ 5,000 $10,090 office expenses $ 2,500 $3 $ 2.500 Advertising expenses $1,600 $1,670 Insurance % 2,890 $ 2,890 Miscellaneous expenses $ 920 $ 1 $ 375 The company uses the number of jobs as its measure of activity For example, mobile lab operating expenses should be $5,000 plus $35 per job, and the actual mobile lab operating expenses for February were $10,090 The company expected to work 150 jobs in February, but actually worked 156 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 (.e. zero variance), Input all amounts as positive values.) Air Qual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Flexible Results Budget 156 Planning Budget Jobs $ 38,500 Activity Variances Revenue and Spending Variances Revenue Expenses Technician wages Moble lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Total expense Net operating income 8.250 10.090 2 800 1.670 2.890 375 26,075 $ 12,425
