AirQual Test Corporation provides on-site air quality testing services. The comp
ID: 2556943 • 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 $25 per job, and the actual mobile lab operating expenses for February were $8,060.
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:
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $25 per job, and the actual mobile lab operating expenses for February were $8,060.
The company expected to work 120 jobs in February, but actually worked 116 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.)
Fixed Variable Actual Component Component Total for per Month per Job February $30,370 $ 8,250 $4,900 $ 25 8,060 $2,400 $ 4 2,730 $ 1,690 $2,890 $ 930 $ 2$ 475 276 Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses $8,400 $1,620 $2,890
Explanation / Answer
Answer:
AirQual Test Corporation
flexible budget performance report
Actual
Revenue
and
Total for
Spending
Flexible
Activity
Planning
February
Variance
Budget
Variance
Budget
Jobs
116
0
116
120
Revenue
30370
1646
U
32016
1104
U
33120
Expanses
Technician wages
8250
150
F
8400
0
8400
Mobile lab operating expenses
8060
260
U
7800
100
F
7900
Office expenses
2730
134
F
2864
16
F
2880
Advertising expenses
1690
70
U
1620
0
1620
Insurance
2890
0
2890
0
2890
Miscellaneous expenses
475
687
F
1162
8
F
1170
Total Expanses
24095
641
F
24736
124
F
24860
Net operating income
6275
1005
U
7280
980
U
8260
Actual
Revenue
and
Total for
Spending
Flexible
Activity
Planning
February
Variance
Budget
Variance
Budget
Jobs
116
0
116
120
Revenue
30370
1646
U
32016
1104
U
33120
Expanses
Technician wages
8250
150
F
8400
0
8400
Mobile lab operating expenses
8060
260
U
7800
100
F
7900
Office expenses
2730
134
F
2864
16
F
2880
Advertising expenses
1690
70
U
1620
0
1620
Insurance
2890
0
2890
0
2890
Miscellaneous expenses
475
687
F
1162
8
F
1170
Total Expanses
24095
641
F
24736
124
F
24860
Net operating income
6275
1005
U
7280
980
U
8260
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