Exercise 9-17 Flexible Budget Performance Report [LO9-1, LO9-2, L09-3, LO9-4] 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: Variable Actual Total for February $30,490 Fixed Component per Month Component per Job $277 Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses $ 8,250 $ 8,280 $ 2,810 $ 1,650 $ 2,880 365 8,400 $4,600 2,600 S 32 $ 3 $1,580 $ 2,880 940 Insurance S 1 Miscellaneous expenses The company uses the number of jobs as its measure of activity. For example, mobile lab operating xpenses should be $4,600 plus $32 per job, and the actual mobile lab operating expenses for February were $8,280. The company expected to work 120 jobs in February, but actually worked 126 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 no effect (i.e., zero variance). Input all amounts as positive values.) AirQual Test Corporation k Flexible Budget Performance Report t For the Month Ended February 28 Planning Budget Flexible nces Actual Results Budget 126 Jobs $ 30,490 Revenue Expenses 8,250 Technician wages Mobile lab operating 8,280 xpenses 2.810 Office expenses 1,650 Advertising expenses 2,880 Insurance 365 Miscellaneous expenses 24,235 Total expense 6,255 Not operating income Problem 9-20 Activity and Spending Variances (LO9-1, LO9-2, LO9-3] 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 $ 20,680 $ 61,000 S 10,600 119,100 69,800 Cost Formula $16,900 plus $0.11 per machine-hour $38,400 plus $1.60 per machine-hour $0.60 per machine-hour Utilities Maintenance Supplies Indirect labor $94,800 plus $1.30 per nachine-hour Depreciation $68,100 During March, the company worked 16,000 machine-hours and produced 10,000 units. The company had originally planned to work 18,000 machine-hours during March. Required: 1. Calculate the activity variances for March 2. Calculate the spending variances for March 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.) ces FAB Corporation Activity Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total Required 1 Required 2 Calculate the spending 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 Spending Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total Required 1 Required 2