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 $27 per job, and the actual mobile lab operating expenses for February were $8,030.

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:

AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Revenue and Spending Variances Activity Variances Revenue Expenses: Technician wages Mobile lab operating expenses Miscellaneous expenses Total expense Net operating income

Explanation / Answer

Flexible budget

flexible(108 jobs)   

revenue 108 * 276 = 29808

less: techician eages = 8200

less:mobile lab operating 4900 + (27*108) = 4900+ 2916 =7816

less: office expense 2400 + 4 *108 = 2400+ 432 =2832

less: advertising expense = 1582

less: insurance = 2860

less: miscellanoeous expense 940 + 1 *108 = 940 +108 = 1048

   Net operating income =$5470

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