AirQual Test Corporation provides on-site air quality testing services. The comp
ID: 2510135 • 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 $4,900 plus $29 per job, and the actual mobile lab operating expenses for February were $8,250.
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.)
2. 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 $29 per job, and the actual mobile lab operating expenses for February were $8,250.
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
1) Fixed Component per Month Variable Component per Job Actual Total for February Flexible Budget Spending Variance F/U Planning Budget Activity Varaince F/U Jobs 106 106 110 Revenue 276.00 27,610.00 29,256.00 1,646.00 U 30,360.00 1,104.00 U Technician wages 8,200.00 8,050.00 8,200.00 150.00 F 8,200.00 - Mobile lab operating expenses 4,900.00 29.00 8,250.00 7,974.00 276.00 U 8,090.00 116.00 F Office expenses 2,300.00 4.00 2,590.00 2,724.00 134.00 F 2,740.00 16.00 F Advertising expenses 1,570.00 1,640.00 1,570.00 70.00 U 1,570.00 - Insurance 2,890.00 2,890.00 2,890.00 - 2,890.00 - Miscellaneous expenses 980.00 1.00 395.00 1,086.00 691.00 F 1,090.00 4.00 F Total expenses 23,815.00 24,444.00 629.00 F 24,580.00 136.00 F Net income 3,795.00 4,812.00 1,017.00 U 5,780.00 968.00 U 2) Fixed Component per Month Variable Component per Job Actual Total for February Flexible Budget Spending Variance F/U Planning Budget Activity Varaince F/U Jobs 106 106 110 Revenue 276.00 27,610.00 29,256.00 1,646.00 U 30,360.00 1,104.00 U Technician wages 8,200.00 8,050.00 8,200.00 150.00 F 8,200.00 - Mobile lab operating expenses 4,900.00 29.00 8,250.00 7,974.00 276.00 U 8,090.00 116.00 F Office expenses 2,300.00 4.00 2,590.00 2,724.00 134.00 F 2,740.00 16.00 F Advertising expenses 1,570.00 1,640.00 1,570.00 70.00 U 1,570.00 - Insurance 2,890.00 2,890.00 2,890.00 - 2,890.00 - Miscellaneous expenses 980.00 1.00 395.00 1,086.00 691.00 F 1,090.00 4.00 F Total expenses 23,815.00 24,444.00 629.00 F 24,580.00 136.00 F Net income 3,795.00 4,812.00 1,017.00 U 5,780.00 968.00 U
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