Exercise 9-17 Flexible Budget Performance Report [LO9-1, LO9-2, LO9-3, LO9-4]
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:
Component per Job
|Mobile lab operating expenses||$||4,800||$||35||$||9,890|
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,800 plus $35 per job, and the actual mobile lab operating expenses for February were $9,890. The company expected to work 150 jobs in February, but actually worked 154 jobs.
Prepare a 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.)
|Actual results||Revenue and spending variances||Flexible budget||Activity variances||Planning budget|
|Mobile lab operating expenses||9890||300||F||10190||140||U||10050|
|Net operating income||12895||2605||U||15500||940||F||14560|
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