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bezimeni [28]
2 years ago
6

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 $33,130
Technician wages $8,300 $8,150
Mobile lab operating expenses $5,000 $34 $9,260
Office expenses $2,500 $3 $2,740
Advertising expenses $1,570 $1,640
Insurance $2,850 $2,850
Miscellaneous expenses $970 $2 $535

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $5,000 plus $34 per job, and the actual mobile lab operating expenses for February were $9,260. The company expected to work 130 jobs in February, but actually worked 138 jobs.

Required:
Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February.
Business
1 answer:
kherson [118]2 years ago
5 0

Answer:

I used an excel spreadsheet since there is not enough room here. I ordered the given data:

                                               Fixed           Variable           Actual Total

Revenue                                                        $276                $33,130

Technician wages                $8,300                                      $8,150

Mobile lab operating exp.   $5,000              $34                 $9,260

Office expenses                   $2,500               $3                  $2,740

Advertising expenses           $1,570                                      $1,640

Insurance                              $2,850                                     $2,850

Miscellaneous expenses        $970                $2                    $535              

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