Prepare a flexible budget performance report showing, Ask an Expert

Accounting

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

Fixed Variable Actual
Component Component Total for
per Month per Job 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 ex, 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 activity variances and revenue and spending variances for February.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M964512

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question in your readings this module you were introduced

Question: In your readings this module, you were introduced to Activity-Based Costing or ABC. It is a method used to determine a reliable predetermined benchmark for the allocation of overhead costs to the products produ ...

Question - parent inc purchased all of the outstanding

Question - Parent Inc. purchased all of the outstanding shares of Sub Ltd. on January 1, Year 1 for $214,000. Amortization of the acquisition differential amounted to $16,000 in each of Years 1 and 2. Parent Inc. reporte ...

Question - assume that a parent company owns 100 of its

Question - Assume that a Parent company owns 100% of its Subsidiary. On January 1, 2016 the Parent company had a $1,000,000 (face) bond payable outstanding with a carrying value of $1,070,000. The bond was originally iss ...

Question - solar power inc had the following transactions

Question - Solar Power Inc. had the following transactions during 2105. Sales revenue $15,000 Equipment rental revenue 420 Cost of sales 6,200 Selling and administrative expenses 3,500 Interest expense 560 Gain on sale o ...

Question - x company manufactures a single product product

Question - X Company manufactures a single product, Product A, and budgets total manufacturing costs each month. The accountant provides the following information about its manufacturing process: Direct material quantity ...

Question - midland oil has 1000 par value bonds outstanding

Question - Midland Oil has $1,000 par value bonds outstanding at 12 percent interest. The bonds will mature in 15 years. What is current price of the bonds if the present yield to maturity is 10%, 15%, and 18%?

Question - you are the controller of harmon oil a

Question - You are the Controller of Harmon Oil, a medium-sized oil exploration company in Texas. It is time to make a forecast of the company's annual earnings. You know that additional losses will be recognized before ...

Question - at the end of 2016 retained earnings for the

Question - At the end of 2016, retained earnings for the Baker Company was $2,550. Revenue earned by the company in 2016 was $2,800, expenses paid during the period were $1,500, and dividends paid during the period were ...

Question purpose of assignmentthis assignment asks you to

Question: Purpose of Assignment This assignment asks you to describe a new business you'd like to start, as well as the advantages and disadvantages of starting a business from scratch versus buying an existing business. ...

Question - an entity is converting its accrual-based

Question - An entity is converting its accrual-based accounting records to a cash basis. The amount of $53 000 (including $7 000 depreciation) was shown as 'Other expenses' in the statement of profit or loss. On inspecti ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert