Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show work Air Qual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for

please show work image text in transcribed
image text in transcribed
Air Qual 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 Fixed Component per Month Revenue Technician wages Mobile lab operating expenses office expenses Advertising expenses Insurance Miscellaneous expenses $ 8,600 $5,000 $ 2,300 $1,600 $ 2,870 $ 940 Variable Component per Actual Total Job for February $ 278 $ 38,950 $ 8,450 $ 34 $ 9,940 $3 $ 2,600 $ 1,670 $ 2,870 $ 545 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $5,000 plus $34 per job, and the actual mobile lab operating expenses for February were $9,940. The company expected to work 150 jobs in February, but actually worked 154 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 (.e., zero variance). Input all amounts as positive values.) Required: Prepare a flexible budget performance report showing Air Qual 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.) AlrQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Flexible Results Budget Planning Budget Jobs 154 $ 38,950 8,450 Revenue Expenses Technician wages Mobile lab oporating expenses Office expenses Advertising expenses Insurance 9,940 2,600 1,670 2,870 545 26,075 $ 12.875 Miscellaneous expenses Total expense Net operating income

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

Auditing Cases An Interactive Learning Approach

Authors: Mark S Beasley, Frank A. Buckless, Steven M. Glover, Douglas F Prawitt

7th Edition

0134421825, 9780134421827

More Books

Students also viewed these Accounting questions