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Category > Accounting Posted 26 Jul 2017 My Price 7.00

AirQual Test Corporation

EXERCISE 10–16 Flexible Budget Performance Report

AirQual Test Corporation provides on-site air quality testing services. The company has provided the following data concerning its operations:

Fixed component Variable component Actual Per month per job total for February

Revenue . . . . . . . . . . . . . . . . . . . . . $360 $18950
Technician wages . . . . . . . . . . . . . $ 4600 $6 450
Mobile lab operating expenses . . . $ 2900 $35 $4530
Office expenses . . . . . . . . . . . . . . $2600 $2 $3 050
Advertising expenses . . . . . . . . . . $ 970 $995
Insurance . . . . . . . . . . . . . . . . . . $1680 $1680
Miscellaneous expenses . . . . . . . $ 500 $3 $465

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $2,900 plus $35 per job, and the actual mobile lab operating expenses for February was $4,530. The company expected to work 50 jobs in February, but actually worked 52 jobs.

Required:
Prepare a flexible budget performance report showing Air Qual Test Corporation’s activity variances and revenue and spending variances for February.

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Maurice Tutor
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Status NEW Posted 26 Jul 2017 12:07 PM My Price 7.00

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