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 Fixed Variable Actual Component Component Total for $ 276$38,650 $ 8,450 per Month per Job February Revenue Technician $8,600 wages Mobile lab operating expenses $4,800 Office expenses $2,500 $1,560 $2,880 $ 930 $ 27S 9,010 $ 3 $ 2,800 $ 1,630 $ 2,880 2S 535 Advertising expenses Insurance Miscellaneous expenses The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,800 plus $27 per job, and the actual mobile lab operating expenses for February were $9,010 The company expected to work 150 jobs in February, but actually worked 148 jobs Required: 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 Flexible Budget Performance Report For the Month Ended February 28 Revenue and Spending Activity Variances Variances Revenue Expenses Technician wages one Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous one one one expenses Total expense Net operating income

Explanation / Answer

Flexible Budget Performance report for AirQual Test Corporation is as prepared below:

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 Actual-Flexible Planning-Flexible Jobs = q $148 148 150 Revenue (276 q) 38,650 ($2,198) U 40,848 552 U 41,400 Expenses: Technician wages 8,450 -150 F 8,600 0 None 8,600 Mobile lab operating expenses (4,800+27q) 9,010 214 U 8,796 54 F 8,850 Office expense (2,500+3q) 2,800 -144 F 2,944 6 F 2,950 Advertising expenses 1,630 70 U 1,560 0 None 1,560 Insurance 2,880 0 None 2,880 0 None 2,880 Miscellaneous expenses (930+2q) $535 -691 F 1,226 4 F 1,230 Total expense 25,305 -701 F 26,006 64 F 26,070 Net Operating Income 13,345 -1,497 U 14,842 488 F 15,330

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