ake’s Roof Repair has provided the following data concerning its costs

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Jake’s Roof Repair has provided the following data concerning its costs:

 

  Fixed Cost
per Month
  Cost per
Repair-Hour
Wages and salaries $ 21,200   $ 15.00
Parts and supplies       $ 7.20
Equipment depreciation $ 2,740   $ 0.45
Truck operating expenses $ 5,710   $ 1.80
Rent $ 4,640      
Administrative expenses $ 3,890   $ 0.60
 

 

For example, wages and salaries should be $21,200 plus $15.00 per repair-hour. The company expected to work 2,800 repair-hours in May, but actually worked 2,700 repair-hours. The company expects its sales to be $51.00 per repair-hour.


Required:

Compute the company’s activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

 

 
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