Explore BrainMass

Explore BrainMass

    Flexible Budget Performance Report

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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 Feb. February

    Revenue . . . . . . . . . . . . . . . . . . . . . $360 $18950
    Technician wages . . . . . . . . . . . . .$ 6400 -- $6,450
    Mobile lab operating expenses . . . .$ 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.

    © BrainMass Inc. brainmass.com June 4, 2020, 2:32 am ad1c9bdddf
    https://brainmass.com/business/budgets/flexible-budget-performance-report-465322

    Solution Summary

    Flexible budget performance reports are determined.

    $2.19

    ADVERTISEMENT