AirQual Test Corporation provides on-site air quality testing services. The company has
provided the following data concerning its operations:
The company uses the number of jobs as its measure of activity. For example, mobile lab
operating expenses should be $4,500 plus $28 per job, and the actual mobile lab operating
expenses for February were $7,740.
Complete the flexible budget performance report showing AirQual Test Corporation
AirQual Test Corporation provides on-site air quality testing services. The company has
provided the following data concerning its operations:
Solution
Prepare a table showing activity variances and revenue and spending variances:
In flexible budget, expenses = fixed component + (Variable component * Number of jobs)