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 |
Actual Total for February |
|||||||
Revenue | $ | 276 | $ | 33,130 | |||||
Technician wages | $ | 8,300 | $ | 8,150 | |||||
Mobile lab operating expenses | $ | 4,900 | $ | 34 | $ | 9,160 | |||
Office expenses | $ | 2,300 | $ | 4 | $ | 2,670 | |||
Advertising expenses | $ | 1,560 | $ | 1,630 | |||||
Insurance | $ | 2,860 | $ | 2,860 | |||||
Miscellaneous expenses | $ | 950 | $ | 1 | $ | 385 | |||
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $34 per job, and the actual mobile lab operating expenses for February were $9,160. The company expected to work 130 jobs in February, but actually worked 138 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.)
Solution:
AirQual Test Corporation | |||||||
Flexible Budget Performance Report | |||||||
For the month Ended February 28 | |||||||
Particulars | Actual results | Revenue and spending variances | Flexible Budget | Activity Variances | Planning Budget | ||
Flights | 138 | 138 | 130 | ||||
Revenue | $33,130.00 | $4,958.00 | U | $38,088.00 | $2,208.00 | F | $35,880.00 |
Expenses: | |||||||
Technical wages | $8,150.00 | $150.00 | F | $8,300.00 | $0.00 | None | $8,300.00 |
Mobile lab operating expenses | $9,160.00 | $432.00 | F | $9,592.00 | $272.00 | U | $9,320.00 |
Office Expenses | $2,670.00 | $182.00 | F | $2,852.00 | $32.00 | U | $2,820.00 |
Advertising Expense | $1,630.00 | $70.00 | U | $1,560.00 | $0.00 | None | $1,560.00 |
Insurance | $2,860.00 | $0.00 | None | $2,860.00 | $0.00 | None | $2,860.00 |
Miscellaneous Expenses | $385.00 | $703.00 | F | $1,088.00 | $8.00 | U | $1,080.00 |
Total expense | $24,855.00 | $1,397.00 | F | $26,252.00 | $312.00 | U | $25,940.00 |
Net Operating Income | $8,275.00 | $3,561.00 | U | $11,836.00 | $1,896.00 | F | $9,940.00 |
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost...
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 Variable Fixed Component component per Actual Total per Month Job for February $ 277 $ 33,260 | 0 $ 3,150 $4,600 $ 30 $ 8, 340 $ 2,200 $ 3 $ 2,440 $1,600 $ 1.670 $ 2,860 $ 2,860 $ 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: Pixed Component Component per Actual Total bruar Job 276 $35,890 7,950 $ 8,780 $ 2,670 s 1,630 s 2,880 5 565 Technician vages Mobile lab operating expenses office expenses Advertising expenses Insurance Miscellaneous expenses $ 8,100 4,600 $ 2,400 1,560 2,880 $ 980 s 31 eBook References The company uses the number of jobs as...
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 Actual Total for February Revenue $ 275 $ 30,250 Technician wages $ 8,300 $ 8,150 Mobile lab operating expenses $ 4,900 $ 35 $ 8,940 Office expenses $ 2,300 $ 3 $ 2,510 Advertising expenses $ 1,570 $ 1,640 Insurance $ 2,880 $ 2,880 Miscellaneous expenses $...
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: Actual Total Component per Job for February Variable $280 $ 30 Fixed Component per Month Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses 串 8,600 串 4,700 $ 2,800 $ 1,560 $ 2,890 $ 950 33,650 8,450 8,440 3,040 1,630 2,890 $385 The company uses the number of jobs...
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 Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses $ 8,600 $ 4,500 $ 2,500 1,570 2,860 $ 960 Variable Actual Total Component per Job for February $ 277 $ 36,030 $ 8,450 $ 34 $ 9, 100 $ 3 $ 2,770 $ 1,640 $ 2,860...
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 Revenue Technieian wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses 8,400 S4,500 2,300 1,610 2,850 $ 970 for February S33,520 $ 8,250 $ 8,630 2,670 1,680 2,850 S 33 405 The company uses the number of jobs as its measure of...
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 Tota.l per Month Job $278 Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses $ 8,000 $4,900 $ 2,400 $ 1,610 $ 2,850 $ 950 for February $30,610 $ 7,850 $ 8,460 $ 2,730 $ 1,680 $ 2,850 $ 375 $ 31 The company...
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 Actual Total for February Revenue $ 277 $ 30,490 Technician wages $ 8,300 $ 8,150 Mobile lab operating expenses $ 4,900 $ 31 $ 8,460 Office expenses $ 2,300 $ 4 $ 2,630 Advertising expenses $ 1,610 $ 1,680 Insurance $ 2,870 $ 2,870 Miscellaneous expenses $...
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 Actual Total for February Revenue $ 277 $ 36,030 Technician wages $ 8,100 $ 7,950 Mobile lab operating expenses $ 4,700 $ 31 $ 8,880 Office expenses $ 2,400 $ 2 $ 2,530 Advertising expenses $ 1,610 $ 1,680 Insurance $ 2,860 $ 2,860 Miscellaneous expenses $...
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 Variable Fixed Component Component per Actual Total per Month Job for February $ 280 $ 39,250 $ 8,100 $ 7,950 $ 5,000 $ 33 $ 9,790 $ 2,500 $ 3 $ 2,800 $ 1,580 $ 1,650 $ 2,860 $ 2,860 $...