Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost Cost per Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses per Month Repair-Hour $ 16.30 $ 8.60 $ 0.40 $ 1.70 $ 23,200 $ 1,600 $ 6,400 $ 3,480 $ 4,500 $ 0.80 For example, wages and salaries should be $23,200 plus $16.30 per repair-hour. The company expected to work 2,800 repair-hours in May, but actually worked 2,900 repair-hours. The company expects its sales to be $44.50 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.)
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
![Exercise 9-7 (Static) Flexible Budgets and Activity Variances [LO9-1, LO9-2]
Jake's Roof Repair has provided the following data concerning its costs:
Fixed Cost
Cost per
Wages and salaries
Parts and supplies
Equipment depreciation
Truck operating expenses
per Month Repair-Hour
$ 16.30
$8.60
$ 0.40
$ 1.70
$ 23,200
$ 1,600
$ 6,400
$ 3,480
$ 4,500
Rent
Administrative expenses
$ 0.80
For example, wages and salaries should be $23,200 plus $16.30 per repair-hour. The company expected to work 2,800 repair-hours in
May, but actually worked 2,900 repair-hours. The company expects its sales to be $44.50 per repair-hour.
ces
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.)
Jake's Roof Repair
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