Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Managerial Accounting Help! AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the

Managerial Accounting Help!

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:

image text in transcribed

Variable Fixed Component Component per Job Actual Total for February $33,130 $ 8,150 $ 8,740 $2,640 per Month $ 276 Revenue Technician wages 8,300 $ 30 Mobile lab operating expenses Office expenses Advertising expenses 5,000 2,400 $ 1,550 $ 2,880 1,620 $ 2,880 Insurance Miscellaneous expenses 930 2 495 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 $8,740. 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 Flexible Planning Budget Results Budget Jobs 276 136 Revenue 33,130 Expenses: Technician wages 8,150 Mobile lab operating 8,740 expenses Office expenses 2,640 Advertising expenses 1,620 Insurance 2,880 Miscellaneous expenses 495 Total expense 24,525 $ Net operating income 8,605 O m

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

Students also viewed these Accounting questions

Question

What is the danger of framing the research question too narrowly?

Answered: 1 week ago

Question

What is Ramayana, who is its creator, why was Ramayana written?

Answered: 1 week ago

Question

To solve by the graphical methods 2x +3y = 9 9x - 8y = 10

Answered: 1 week ago

Question

Why does sin 2x + cos2x =1 ?

Answered: 1 week ago

Question

What are DNA and RNA and what is the difference between them?

Answered: 1 week ago

Question

Are there any questions that you want to ask?

Answered: 1 week ago