AirQual Test Corporation provides on-site air quality testing services. The company provided the following cost...
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Accounting
AirQual Test Corporation provides on-site air quality testing services. The company 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
$ 8,100
$ 7,950
Mobile lab operating expenses
$ 4,600
$ 34
$ 8,860
Office expenses
$ 2,500
$ 3
$ 2,740
Advertising expenses
$ 1,590
$ 1,660
Insurance
$ 2,900
$ 2,900
Miscellaneous expenses
$ 930
$ 2
$ 495
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $34 per job, and the actual mobile lab operating expenses for February were $8,860. The company expected to work 130 jobs in February but actually worked 136 jobs.
Required:
Prepare a flexible budget performance report for February.
Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.
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