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:
Fixed Component per Month |
Variable Component per Job |
Actual Total for February |
|||||||
Revenue | $ | 276 | $ | 30,370 | |||||
Technician wages | $ | 8,500 | $ | 8,350 | |||||
Mobile lab operating expenses | $ | 4,900 | $ | 30 | $ | 8,340 | |||
Office expenses | $ | 2,200 | $ | 4 | $ | 2,530 | |||
Advertising expenses | $ | 1,620 | $ | 1,690 | |||||
Insurance | $ | 2,860 | $ | 2,860 | |||||
Miscellaneous expenses | $ | 930 | $ | 1 | $ | 355 | |||
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $30 per job, and the actual mobile lab operating expenses for February were $8,340. The company expected to work 120 jobs in February, but actually worked 126 jobs.
Required:
Prepare a flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and activity variances for February.
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