AirQual Test Corporation provides on-site air quality testing services. The comp
ID: 2467925 • Letter: A
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 $4,600 plus $27 per job, and the actual mobile lab operating expenses for February were $7,730.
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
Revenue & Spending Variances
Activity Variances
Revenue
2750
Unfavourable
554
Unfavourable
Expenses:
Technician Wages
150
favourable
0
none
Mobile lab Operating expenses
160
Unfavourable
54
favourable
Office expenses
150
favourable
6
favourable
Advertising expenses
70
Unfavourable
0
none
Insurance
0
none
0
none
Miscellaneous expenses
695
favourable
4
favourable
Total expense
765
Unfavourable
64
favourable
Net operating income
1985
Unfavourable
490
Unfavourable
formula= (standard job - actual job worked)xvariable component +fixed component - actualtotal
Revenue & Spending Variances
Activity Variances
Revenue
2750
Unfavourable
554
Unfavourable
Expenses:
Technician Wages
150
favourable
0
none
Mobile lab Operating expenses
160
Unfavourable
54
favourable
Office expenses
150
favourable
6
favourable
Advertising expenses
70
Unfavourable
0
none
Insurance
0
none
0
none
Miscellaneous expenses
695
favourable
4
favourable
Total expense
765
Unfavourable
64
favourable
Net operating income
1985
Unfavourable
490
Unfavourable
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