Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost per Month $ 21,200 Cost per Repair-Hour $15.00 $7.20 $ 0.35 $ 1.50 $ 0.40 Wages and salaries Parts and supplies. Equipment depreciation Truck operating expenses Rent Administrative expenses For example, wages and salaries should be $21,200 plus $15.00 per repair-hour. The company expected to work 2,700 repair-hours in May, but actually worked 2,600 repair-hours. The company expects its sales to be $52.00 per repair-hour. $ 2,770 $5,790 $4,640 $3,800 Required: Compute the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for
Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost per Month $ 21,200 Cost per Repair-Hour $15.00 $7.20 $ 0.35 $ 1.50 $ 0.40 Wages and salaries Parts and supplies. Equipment depreciation Truck operating expenses Rent Administrative expenses For example, wages and salaries should be $21,200 plus $15.00 per repair-hour. The company expected to work 2,700 repair-hours in May, but actually worked 2,600 repair-hours. The company expects its sales to be $52.00 per repair-hour. $ 2,770 $5,790 $4,640 $3,800 Required: Compute the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for
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
$ 21,200
$15.00
$7.20
Wages and salaries
Parts and supplies
Equipment depreciation
Truck operating expenses
Rent
Administrative expenses
For example, wages and salaries should be $21,200 plus $15.00 per repair-hour. The company expected to work 2,700 repair-hours in
May, but actually worked 2,600 repair-hours. The company expects its sales to be $52.00 per repair-hour.
Revenue
Expenses:
$ 2,770
$ 5,790
$ 4,640
$ 3,800
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
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
$ 0.35
$ 1.50
$0.40
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