AirQual Test Corporation provides on-site air quality testing services. The comp

Question

AirQual Test Corporation provides on-site air quality testing services. The company has provided the following data concerning its operations:

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $29 per job, and the actual mobile lab operating expenses for February were $9,410.

Complete the 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 provides on-site air quality testing services. The company has provided the following data concerning its operations:

Explanation / Answer

AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Planning Budget Activity Variances Flexible Budget Revenue and Spending Variances Actual Results Jobs 150 144 144 Revenue ($275*q) 41,250 1,650 U 39,600 1,100 U 38,500 Expenses: Technician Wages 8,600 0 8,600 150 F 8,450 Mobile Lab Operating Expenses (4,900 + 29*q) 9,250 (4,900 + 29*150) 174 F 9,076 (4,900 + 29*144) 334 U 9,410 Office Expenses (2,800 + 3*q) 3,250 (2,800 + 3*150) 18 F 3,232 (2,800 + 3*144) 132 F 3,100 Advertising Expenses 1,600 0 1,600 70 U 1,670 Insurance 2,850 0 2,850 0 2,850 Miscellaneous Expenses (960 +1*q) 1,110 (960 + 1*150) 6 F 1,104 (960 + 1*144) 689 F 415 Total Expense 26,660 198 F 26,462 567 F 25,895 Net Income $14,590 $1,452 U $13,138 533 U $12,605

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