AirAssurance Corporation provides on-site air quality testing services. - 17496

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yousafbhutta

yousafbhutta

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  • From: Business,
  • Posted on: Fri 31 May, 2013
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Request Description

AirAssurance 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
March
  Revenue       $ 275      $ 24,750    
  Technician wages $ 8,600              $ 8,450    
  Mobile lab operating expenses $ 4,900        $ 29      $ 7,960    
  Office expenses $ 2,700        $ 3      $ 2,850    
  Advertising expenses $ 1,580           $ 1,650    
  Insurance $ 2,870           $ 2,870    
  Miscellaneous expenses $ 960        $ 2      $ 465    

 

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $29 per job, and the actual mobile lab operating expenses for March were $7,960.

     The company expected to work 100 jobs in March, but actually worked 98 jobs.

 

Required:

Complete the flexible budget performance report showing AirAssurance Corporation’s activity variances and revenue and spending variances for March. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)

Solution Description

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Attachments
Ch 9 Q4.docx
Ch 9 Q4.docx