Question

AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February Revenue Technician wages Mobile lab operating expenses office expenses Advertising expenses Insurance Miscellaneous expenses Variable Fixed Component component per Actual Total per Month Job for February $ 277 $ 33,260 | 0 $ 3,150 $4,600 $ 30 $ 8, 340 $ 2,200 $ 3 $ 2,440 $1,600 $ 1.670 $ 2,860 $ 2,860 $ 1 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $30 per job, and the actual mobile lab operating expenses for February were $8.340. The company expected to work 130 jobs in February, but actually worked 134 jobs.

Answer 1

AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Revenue and Flexible Activity Planning Actual Results Spending Variances Budget Variances Budget 134 134 130 33260 3858 U 37118 1108 F 36010 8150 Jobs (9) Revenue ($277.00) Expenses: Technician wages ($8,300) Mobile lab operating expenses ($4,600 + $30.000) Office expenses ($2,200 + $3.009) Advertising expenses ($1,600) Insurance ($2,860) Miscellaneous expenses ($970 + $1.009) Total expense Net operating income 8340 2440 1670 2860 405 23865 9395 150 F 280 F 162 F 70 U None 699 F 1221 F 2637 U 8300 8620 2602 1600 2860 1104 25086 12032 None 120 U 12 U None None 4U 136 U 972 F 8300 8500 2590 1600 2860 1100 24950 11060

1 AirQual Test Corporation 2 3 Flexible Budget Performance Report 4 For the Month Ended February 28 5 Activity Variances 6 Actual Results 134 33260 Revenue and flexible Spending Variances Budget =B7 3858 U =D7*277 Planning Budget 130 =F7*277 1108 F 7 Jobs (9) 8 Revenue ($277.00) 9 Expenses: 10 Technician wages ($8,300) 11 Mobile lab operating expenses ($4,600 + $30.00q) 12 Office expenses ($2,200 + $3.009) 13 Advertising expenses ($1,600) 14 Insurance ($2,860) 15 Miscellaneous expenses ($970 + $1.000) 16 Total expense 17 Net operating income 8150 8340 2440 1670 2860 405 =SUM(B10:315) FB8-Blb =B8-B16 150 F 280 F 162 F 70 U None 699 F 1221 F 2637 U 8300 --4600+(30*D7) =2200+(38D7) 1600 2860 =970+(1*D7) =SUM(D10:D15) =D8-D16 None 120 U 12 U None None 4U 136 U 972 F 8300 -4600+(30*F7) =2200+(3*F7) 1600 2860 =970+(1*F7) =SUM(F10:F15) =F8-F16 18