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 $ 16.00 Parts and supplies $ 7.70 Equipment depreciation $ 2,800 $ 0.50 Truck operating expenses $5,740 $ 1.50 Rent $ 4,670 Administrative expenses $ 3,870 $ 0.60 For example, wages and salaries should be $21,200 plus $16.00 per repair - hour. The company expected to work 2,600 repair-hours in May, but actually worked 2,500 repair-hours. The company expects its sales to be $53.00 per repair - hour. Required: Compute the company's activity variances for May.
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 $ 16.00 Parts and supplies $ 7.70 Equipment depreciation $ 2,800 $ 0.50 Truck operating expenses $5,740 $ 1.50 Rent $ 4,670 Administrative expenses $ 3,870 $ 0.60 For example, wages and salaries should be $21,200 plus $16.00 per repair - hour. The company expected to work 2,600 repair-hours in May, but actually worked 2,500 repair-hours. The company expects its sales to be $53.00 per repair - hour. Required: Compute the company's activity variances for May.
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 per Month Cost per Repair - Hour Wages and salaries $21,200 $ 16.00 Parts
and supplies $ 7.70 Equipment depreciation $ 2,800 $ 0.50 Truck operating
expenses $ 5,740 $ 1.50 Rent $ 4,670 Administrative expenses $ 3,870 $ 0.60
For example, wages and salaries should be $21,200 plus $16.00 per repair - hour.
The company expected to work 2,600 repair - hours in May, but actually worked
2,500 repair - hours. The company expects its sales to be $53.00 per repair - hour.
Required: Compute the company's activity variances for May.
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