Fixed Variable Actual Component Component Total for per month per Job February R
ID: 2563493 • Letter: F
Question
Fixed Variable Actual Component Component Total for per month per Job February Revenue $277 $ 24,950 Technician wages $8,400 $ 8,250 Mobile lab operating expenses $4.900 S 29 $ 7,960 Office expenses $ 2,300 $ 2,350 Advertising expenses $ 1,590 $ 1,660 Insurance $2.860 s 2,860 Miscellaneous expenses $980 $ 2 $ 485 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 $7,960. The company expected to work 100 jobs in February, but actually worked 90 jobs. Required: Complete the flexible budget performance report showing Air Qual 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 (ie, zero variance)Input all amounts as positive values.) AirQual Test Corporation Flexible Budget Performance Report For the Month ended February 28 Revenue and Spending variances Activity Variances O Revenue Expenses Technician wages N O Mobile lab operating expenses office expenses Advertising expenses Insurance Miscellaneous expenses Total expense Net operating income O I D D I DExplanation / Answer
Actual Revenue and spending variances Flexible budget Activtiy variances Planning budget Revenue 24950 20 F 24930 2770 U 27700 Expenses: Technician wages 8250 150 F 8400 0 None 8400 Mobile lab oeprating expenses 7960 450 U 7510 290 F 7800 Office expenses 2350 130 F 2480 20 F 2500 Advertising expenses 1660 70 U 1590 0 None 1590 Insurance 2860 0 None 2860 0 None 2860 Miscellaneous expenses 485 675 F 1160 20 F 1180 Total expense 23565 435 F 24000 330 F 24330 Net operating income 1385 455 F 930 2440 U 3370
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