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PLEASE ANSWER ASAP AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the
PLEASE ANSWER ASAP
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 Fixed Component Component per Actual Total per Month Job for February Revenue $ 280 $33, 650 Technician wages $ 8, 300 $ 8, 150 Mobile lab operating expenses $ 4,500 $ 32 8 , 500 Office expenses $ 2, 500 $ 2,870 Advertising expenses $ 1, 600 $ 1, 670 Insurance $ 2, 880 2 , 880 Miscellaneous expenses $ 980 $ 2 545 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,500 plus $32 per job, and the actual mobile lab operating expenses for February were $8,500. The company expected to work 130 jobs in February, but actually worked 140 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 Results Budget Budget Jobs 140 Revenue 33,650 Expenses Technician wages 8, 150 Mobile lab operating 8,500 expenses Office expenses 2,870 Advertising expenses 1,670 Insurance 2,880 Miscellaneous expenses 545 Total expens 24,615 Net operating income $ 9,035Step by Step Solution
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