Homework Help is Here – Start Your Trial Now!
Business
Accounting
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: Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Jobs Revenue Expenses: Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Total expense Net operating income The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus $32 per job, and the actual mobile lab operating expenses for February were $9,340. The company expected to work 150 jobs in February, but actually worked 158 jobs. Actual Results 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.) Fixed Component per Month 158 $ 8,100 $ 4,700 $ 2,700 $ 1,550 $2,890 930 $ $ 38,500 Variable. Component per Job $275 7,950 9,340 3,000 1,620 2,890 385 25,185 $ 13,315 $32 3 $ $1 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Flexible Budget Actual Total for February $ 38,500 $ 7,950 $ 9,348 $3,000 $ 1,620 $ 2,890 $ 385 Planning Budget

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: Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Jobs Revenue Expenses: Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Total expense Net operating income The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus $32 per job, and the actual mobile lab operating expenses for February were $9,340. The company expected to work 150 jobs in February, but actually worked 158 jobs. Actual Results 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.) Fixed Component per Month 158 $ 8,100 $ 4,700 $ 2,700 $ 1,550 $2,890 930 $ $ 38,500 Variable. Component per Job $275 7,950 9,340 3,000 1,620 2,890 385 25,185 $ 13,315 $32 3 $ $1 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Flexible Budget Actual Total for February $ 38,500 $ 7,950 $ 9,348 $3,000 $ 1,620 $ 2,890 $ 385 Planning Budget

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...
See similar textbooks
icon
Related questions
icon
Concept explainers
Topic Video
Question
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: Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Jobs Revenue Expenses: Technician wages Mobile lab operating expenses Office expenses The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus $32 per job, and the actual mobile lab operating expenses for February were $9,340. The company expected to work 150 jobs in February, but actually worked 158 jobs. Advertising expenses Insurance Miscellaneous expenses 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.) Total expense Net operating income Actual Results Fixed Component per Month 158 $ 8,100 $ 4,700 $ 2,700 $ 1,550 $ 2,890 $ 930 $ 38,500 Variable Actual Total Component per Job for February $275 $ 38,500 $ 7,950 $ 9,340 $ 3,000 $ 1,620 $ 2,890 $ 385 7,950 9,340 3,000 1,620 2,890 385 25,185 $ 13,315 $32 $ 3 $ 1 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Flexible Budget Planning Budget ہے
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: Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Jobs Revenue Expenses: Technician wages Mobile lab operating expenses Office expenses The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus $32 per job, and the actual mobile lab operating expenses for February were $9,340. The company expected to work 150 jobs in February, but actually worked 158 jobs. Advertising expenses Insurance Miscellaneous expenses 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.) Total expense Net operating income Actual Results Fixed Component per Month 158 $ 8,100 $ 4,700 $ 2,700 $ 1,550 $ 2,890 $ 930 $ 38,500 Variable Actual Total Component per Job for February $275 $ 38,500 $ 7,950 $ 9,340 $ 3,000 $ 1,620 $ 2,890 $ 385 7,950 9,340 3,000 1,620 2,890 385 25,185 $ 13,315 $32 $ 3 $ 1 AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Flexible Budget Planning Budget ہے
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
SEE MORE TEXTBOOKS