Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
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 $ 9,035

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_2

Step: 3

blur-text-image_3

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

Intermediate Accounting Volume 2

Authors: Thomas Beechy, Joan Conrod, Elizabeth Farrell, Ingrid McLeod-Dick

6th Edition

1259105482, 9780071338820

More Books

Students also viewed these Accounting questions

Question

2. Have enough shelves so that materials need not be stacked.

Answered: 1 week ago

Question

What does this look like?

Answered: 1 week ago