Flexible Budget - Review Exercise 9-17 Flexible Budget Performance Report Manage
ID: 2566136 • Letter: F
Question
Flexible Budget - Review Exercise 9-17 Flexible Budget Performance Report Managerial Accounting, Garrison, Noreen, Brewer,16h edition, McGraw Hill AirQual Test Corporation provides on-site air quality testing services. The company provided the following data concerning its operations: Fixed ComponertV VariableActual Total per Month Compoent per Job for February Revenue Technician wagea Mobile lab operating expenoeo Office expenses Adverticing expenses Insurance Miocelloneous expene $360 $6.400 $2.900 $2.600 $970 $1.680 $500 $18.950 $6.450 $4.530 $3,050 $995 $1,680 $465 $35 $2 $3 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $2,900 plus $35 per job, and the actual mobile lab operating expenses for February were $4,530 The company expected to work 50 jobs in February, but actually worked 52 jobs. Required Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February.Explanation / Answer
52 52 50 Flexible Budget Perofrmance Report Actual Revenue & Spending Flexible Activity variance Static Variance budget budget Revenues 18,950 230 F 18720 720 F 18000 Expenses Technician wages 6,450 50 U 6,400 0 U 6,400 mobile lab operating 4,530 190 F 4720 70 U 4650 office expense 3,050 346 U 2704 4 U 2700 Advertising expense 995 25 U 970 0 N 970 insurance 1,680 0 N 1,680 0 N 1,680 miscellaneous expense 465 35 F 500 100 F 600 total expense 17170 196 U 16974 26 F 17000 net operating income 1,780 34 F 1746 746 F 1000
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