Fixed Component Variable Component Actual Total per Month per Job for February
Revenue $277 $33,260
Technician wages $8,400 $8,250
Mobile lab operating
expenses $4,700 $32 $8,700
Office expenses $2,400 $2 $2,510
Advertising expenses $1,580 $1,650
Insurance $2,890 $2,890
Miscellaneous expenses $920 $1 $355
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $32 per job, and the actual mobile lab operating expenses for February were $9,220. The company expected to work 140 jobs in February, but actually worked 148 jobs.
Required:
Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February.
AirQual Test Corporation
Flexible Budget Performance Report
For the Month Ended February 28
Actual Revenue and Flexible Activity Planning
Results Spending Budget Variances Budget
Variances
Jobs 148 148 140
Revenue $36,310
Expenses:
Technician wages 8,050
Mobile lab operating
expenses 9,220
Office expenses 2,770
Advertising expenses 1,630
Insurance 2,890
Miscellaneous
expenses 515
Total expense 25,075
Net operating income11,235

Benton company (bc), a calendar year entity, has one owner, who is in the 37% federal income tax bracket (any net capital gains or dividends would be taxed at a 20% rate). bc's gross income is $395,000, and its ordinary trade or business deductions are $245,000. ignore the standard deduction (or itemized deductions) and the deduction for qualified business income. if required, round computations to the nearest dollar. a. bc is operated as a proprietorship, and the owner withdraws $100,000 for personal use. bc's taxable income for the current year is $ , and the tax liability associated with the income from the sole proprietorship is $ . b. bc is operated as a c corporation, pays out $100,000 as salary, and pays no dividends to its shareholder. bc's taxable income for the current year is $ , and bc's tax liability is $ . the shareholder's tax liability is $ . c. bc is operated as a c corporation and pays out no salary or dividends to its shareholder. bc's taxable income for the current year is $ , and bc's tax liability is $ . d. bc is operated as a c corporation, pays out $100,000 as salary, and pays out the remainder of its earnings as dividends. bc's taxable income for the current year is $ , and bc's tax liability is $ .