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:

	Fixed Component per Month			Variable Component per Job			Actual Total for February
Revenue				$	278		$	36,170
Technician wages	$	8,300					$	8,150
Mobile lab operating expenses	$	4,500		$	34		$	9,100
Office expenses	$	2,200		$	2		$	2,330
Advertising expenses	$	1,570					$	1,640
Insurance	$	2,870					$	2,870
Miscellaneous expenses	$	920		$	2		$	505

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,500 plus $34 per job, and the actual mobile lab operating expenses for February were $9,100. The company expected to work 140 jobs in February, but actually worked 148 jobs.

Answer 1