Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Fixed Component per Month Revenue Variable Component per Job $ 275 Actual Total for February $ 30,250 Technician wages $ 8,500 $ 8,350 Mobile

image text in transcribed

Fixed Component per Month Revenue Variable Component per Job $ 275 Actual Total for February $ 30,250 Technician wages $ 8,500 $ 8,350 Mobile lab operating expenses" $ 4,900 $ 30 $ 8,340 office expenses $ 2,300 $ 2 $ 2,390 Advertising expenses $1,610 $ Insurance $ 2,860 Miscellaneous expenses $ 980 $ 2 1,680 $ 2,860 $ 525 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $30 per job, and the actual mobile lab operating expenses for February were $8,340. The company expected to work 120 jobs in February, but actually worked 122 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 Jobs Actual Results 122 $ 30,250 Revenue Expenses Technician wages 8,350 Mobile lab operating expenses 8,340 Office expenses 2,390 Advertising expenses 1,680 Insurance 2,860 Flexible Planning Budget Budget A

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management and Cost Accounting

Authors: Colin Drury

8th edition

978-1408041802, 1408041804, 978-1408048566, 1408048566, 978-1408093887

More Books

Students also viewed these Accounting questions