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#1

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 Variable Component per Job § 33 Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses $ 8,10 $ 4,900 $ 2.600 $ 1,59e $ 2.860 $ 938 Actual Total for February $ 27,940 $ 7.95€ $ 8,370 $ 2.789 $ 1.660 $ 2,860 $ 345 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4.900 plus $33 per job, and the actual mobile lab operating expenses for February were $8,370. The company expected to work 110 jobs in February, but actually worked 114 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.) AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Revenue and flexible Results Spending Variances Budget 114 Activity Variances Planning Budget 114 $ 27,940 V F T None Revenue Expenses: Technician wages Moble lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Total expense Net operating income s F T 7.950 8,370 2,780 1,660 2,860 345 23,965 3.975 None F F None None U

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Answer 1

x Ajdoual Test Corpoad Aldqual Test Coupozorion flexible Budget Performance Report for the month ended febrian 28 Actual Revenue and flexible - Activity Result spending variance Budget a vorona oudol variance variance 114 114 planning Budget 110 Jobs: $ 3866 u $ 31806 1116 F 30690 i Wone 8100 o F 8100 Revenue $ 27,940 Expense: technician wages 7950 mbiab OP EXP. 8370 office EXP. 2780 Adv. EXP 1660 Insurance 2860 misse EXP 345 Toral expense & 23965 Net op. Income $3975 Iso 292 1 62 I 70 0 6 99 1233 $2633 F 8662 132 F 2942 12 u 1590 o None 2860 10 E 1044 G F $ 25198 148 6608 968 0 8530 U 2930 Nome 1590 Home 2860 0 1040 U 25050 F 5640 Explanahon: - 30690 8100 Revenue Tech.wages mb cobOP.EXP. office XP. Adv.&XH Insurance misCC EXP flexible Budge! planning Budget 110 $ 279 X 114 131806 $2798 110 eoriven) 8100 Coriven) 4900 +(5 33 X 114 8662 $4900+ (633x110) 8530 $2600t ($3x114) 2942 $2600+ ($34110) 2930 I conven) $ 1590 (Griven) 15go coliven) $2860 (Given $ 2860 & 930+ 16 1X114) & 1044 $930 ($1x110) s 1040