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amm1812
3 years ago
12

Crimson 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 $350 $30,000 Technician Wages $8,000 $15 $9,800 Mobile lab operating expenses $3,000 $30 $5,500 Office expenses $2,000 $10 $2,800 Advertising expenses $1,000 $1,050 Insurance $1,650 $1,650 Miscellaneous expenses $1,200 $5 $1,600 The company uses the number of jobs as its measure of activity. The company expected to work 90 jobs in February, but actually worked 88 jobs. Prepare: A. Flexible Budget Performance Report
Business
1 answer:
Strike441 [17]3 years ago
8 0

Answer:

  Profit = $<u>8,670</u>

Explanation

<em>A flexible budget is that prepare for the actual activity level achieved using the assumptions of the static budget. </em>

<em>So we will prepare a flexible budget for 88 jobs using the assumptions of the</em> <em>budget for 90 jobs</em>

Crimson Test Corporation

FLEXIBLE BUDGET

                                                                                            $

Explanation:

Revenue  (88× $350)                                                       30,800

Technical wages    ( 88× $15)+8000   9320

Mobile operating (88×$30) +(3000     5640

Office expenses (88 × $10) + 2,000     2880

Advertising                                              1000

Insurance                                                1,650

Miscellaneous      (88 × $5) + 1200       <u> 1,640</u>

Total expenditure                                                         <u>(22,130)</u>

    Profit                                                                            <u>8,670</u>

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