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Complete E10-16 from your textbook on page 439. Post your report, and comment upon your findings. EXERCISE 10-16 Flexible Budget Performance Report...

Complete E10-16 from your textbook on page 439. Post your report, and comment upon your findings.
Complete E10-16 from your textbook on page 439. Post your report, and comment upon your findings. EXERCISE 10–16 Flexible Budget Performance Report [LO1, LO4] AirQual Test Corporation provides on-site air quality testing services. The company has provided the following data concerning its operations: Fixed Cost Cost per per Month Repair-Hour Wages and salaries . . . . . . . . . . . $23,200 $16.30 Parts and supplies . . . . . . . . . . . . $8.60 Equipment depreciation . . . . . . . . $1,600 $0.40 Truck operating expenses . . . . . . $6,400 $1.70 Rent . . . . . . . . . . . . . . . . . . . . . . . $3,480 Administrative expenses . . . . . . . . $4,500 $0.80 Fixed Variable Actual Element Element Total for per Month per Liter June Revenue . . . . . . . . . . . . . . . $12.00 $71,540 Raw materials . . . . . . . . . . . $4.65 $29,230 Wages . . . . . . . . . . . . . . . . . $5,600 $1.40 $13,860 Utilities . . . . . . . . . . . . . . . . $1,630 $0.20 $3,270 Rent . . . . . . . . . . . . . . . . . . $2,600 $2,600 Insurance . . . . . . . . . . . . . . $1,350 $1,350 Miscellaneous . . . . . . . . . . . $650 $0.35 $2,590 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 Offi ce 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 fl exible budget performance report showing AirQual Test Corporation’s activity variances and revenue and spending variances for February.
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