Problem - Flexible Budget Performance Report
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following data concerning its operation:
|
|
Fixed Component per Month
|
Variable Component per Job
|
Actual Total for February
|
|
Revenue
|
|
$360
|
$18,950
|
|
Technician wages
|
$6,400
|
|
$6,450
|
|
Mobile lab operating expenses
|
$2,900
|
$35
|
$4,530
|
|
Office expenses
|
$2,600
|
$2
|
$3,050
|
|
Advertising expenses
|
$970
|
|
$995
|
|
Insurance
|
$1,680
|
|
$1,680
|
|
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 were $4,530.
The company expected to work 50 jobs in February, but actually worked 52 jobs.
Required: Prepare a flexible budget performance report showing AIrQual Test Corporation's revenue and spending variances and activity variances for February.