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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: Fixed Component per Month Revenue Variable Actual Total Component per Job for February $278 $ 30,610 Technician wages $ 8,300 $ 8,150 Mobile lab operating expenses $ 4,600 $ 30 $ 8,040 Office expenses $ 2,700 $ 3 $ 2,910 Advertising expenses $ 1,580 $1,650 Insurance $ 2,890 $ 2,890 Miscellaneous expenses $ 950 $ 1 $ 375 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $30 per job, and the actual mobile lab operating expenses for February were $8,040. The company expected to work 120 jobs in February, but actually worked 126 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 126 Revenue $ 30,610 Expenses Technician wages 8,150 Mobile lab operating 8,040 expenses Office expenses 2,910 Flexible Planning Budget Budget 126

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: Fixed Component per Month Revenue Variable Actual Total Component per Job for February $278 $ 30,610 Technician wages $ 8,300 $ 8,150 Mobile lab operating expenses $ 4,600 $ 30 $ 8,040 Office expenses $ 2,700 $ 3 $ 2,910 Advertising expenses $ 1,580 $1,650 Insurance $ 2,890 $ 2,890 Miscellaneous expenses $ 950 $ 1 $ 375 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $30 per job, and the actual mobile lab operating expenses for February were $8,040. The company expected to work 120 jobs in February, but actually worked 126 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 126 Revenue $ 30,610 Expenses Technician wages 8,150 Mobile lab operating 8,040 expenses Office expenses 2,910 Flexible Planning Budget Budget 126

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...
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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: Fixed Component per Month Revenue Variable Actual Total Component per Job for February $278 $ 30,610 Technician wages $ 8,300 $ 8,150 Mobile lab operating expenses $ 4,600 $ 30 $ 8,040 Office expenses $ 2,700 $ 3 $ 2,910 Advertising expenses $ 1,580 $1,650 Insurance $ 2,890 $ 2,890 Miscellaneous expenses $ 950 $ 1 $ 375 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $30 per job, and the actual mobile lab operating expenses for February were $8,040. The company expected to work 120 jobs in February, but actually worked 126 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 126 Revenue $ 30,610 Expenses Technician wages 8,150 Mobile lab operating 8,040 expenses Office expenses 2,910 Flexible Planning Budget Budget 126
Transcribed Image Text: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: Fixed Component per Month Revenue Variable Actual Total Component per Job for February $278 $ 30,610 Technician wages $ 8,300 $ 8,150 Mobile lab operating expenses $ 4,600 $ 30 $ 8,040 Office expenses $ 2,700 $ 3 $ 2,910 Advertising expenses $ 1,580 $1,650 Insurance $ 2,890 $ 2,890 Miscellaneous expenses $ 950 $ 1 $ 375 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $30 per job, and the actual mobile lab operating expenses for February were $8,040. The company expected to work 120 jobs in February, but actually worked 126 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 126 Revenue $ 30,610 Expenses Technician wages 8,150 Mobile lab operating 8,040 expenses Office expenses 2,910 Flexible Planning Budget Budget 126
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