Exercise 9-17 Flexible Budget Performance Report [LO9-1, LO9-4] AirQual Test Cor
ID: 2487354 • Letter: E
Question
Exercise 9-17 Flexible Budget Performance Report [LO9-1, LO9-4]
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 $30 per job, and the actual mobile lab operating expenses for February were $8,360.
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
Actual
Spending variance
Flexible
Activity variance
Planned
Revenue
27,830
1,638(U)
29,468
1,112(U0
30,580
Expenses
Technical wages
8,050
150(F)
8,200
0
8,200
Mobile lab
8,360
280(U)
8,080
120(F)
8,200
Office expense
2,680
138(U)
2,818
12(F)
2,830
Advertising
expense
1,630
70(U)
1,560
-
1,560
Insurance
2,900
0
2,900
-
2,900
Misc expense
375
691(F)
1,066
4(F)
1,070
Total expense
23,995
629(F)
24,624
136(F)
24,760
Net income
3,835
1,009(F)
4,844
976(U)
5,820
Actual
Spending variance
Flexible
Activity variance
Planned
Revenue
27,830
1,638(U)
29,468
1,112(U0
30,580
Expenses
Technical wages
8,050
150(F)
8,200
0
8,200
Mobile lab
8,360
280(U)
8,080
120(F)
8,200
Office expense
2,680
138(U)
2,818
12(F)
2,830
Advertising
expense
1,630
70(U)
1,560
-
1,560
Insurance
2,900
0
2,900
-
2,900
Misc expense
375
691(F)
1,066
4(F)
1,070
Total expense
23,995
629(F)
24,624
136(F)
24,760
Net income
3,835
1,009(F)
4,844
976(U)
5,820
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.