Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost Cost per per Month Repair-Hour Wages and salaries $ 21,400 $ 15.00 Parts and supplies $ 7.30 Equipment depreciation $ 2,730 $ 0.60 Truck operating expenses $ 5,800 $ 1.90 Rent $ 4,690 Administrative expenses $ 3,890 $ 0.60 For example, wages and salaries should be $21,400 plus $15.00 per repair-hour. The company expected to work 3,000 repair-hours in May, but actually worked 2,900 repair-hours. The company expects its sales to be $45.00 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.) Revenue Expenses: Jake's Roof Repair Activity Variances For the Month Ended May 31 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Total expense Net operating income
Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost Cost per per Month Repair-Hour Wages and salaries $ 21,400 $ 15.00 Parts and supplies $ 7.30 Equipment depreciation $ 2,730 $ 0.60 Truck operating expenses $ 5,800 $ 1.90 Rent $ 4,690 Administrative expenses $ 3,890 $ 0.60 For example, wages and salaries should be $21,400 plus $15.00 per repair-hour. The company expected to work 3,000 repair-hours in May, but actually worked 2,900 repair-hours. The company expects its sales to be $45.00 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.) Revenue Expenses: Jake's Roof Repair Activity Variances For the Month Ended May 31 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Total expense Net operating income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Jake's Roof Repair has provided the following data concerning its costs:
Fixed Cost
Cost per
per Month
Repair-Hour
Wages and salaries
$
21,400
$
15.00
Parts and supplies
$
7.30
Equipment depreciation
$
2,730 $
0.60
Truck operating expenses
$
5,800 $
1.90
Rent
$
4,690
Administrative expenses
$
3,890 $
0.60
For example, wages and salaries should be $21,400 plus $15.00 per repair-hour. The
company expected to work 3,000 repair-hours in May, but actually worked 2,900
repair-hours. The company expects its sales to be $45.00 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.)
Revenue
Expenses:
Jake's Roof Repair
Activity Variances
For the Month Ended May 31
Wages and salaries
Parts and supplies
Equipment depreciation
Truck operating expenses
Rent
Administrative expenses
Total expense
Net operating income
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