Response to the following problem:
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following data concerning its operations:
|
|
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 ..........................................
|
51,680
|
|
$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 activity variances and revenue and spending variances forFebruary.