Thursday, August 15, 2013

AirAssurance Corporation provides on-site air quality testing services

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.)




Click here for the SOLUTION

No comments:

Post a Comment