Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost per Month $ 20,800 Cost per Repair-Hour Wages and salaries Parts and supplies $ 15.00 2$ $ 7.60 $ 0.35 $ 1.70 Equipment depreciation Truck operating expenses Rent Administrative expenses $ 2,740 $ 5,710 $ 4,650 $ 3,830 $ 0.50 For example, wages and salaries should be $20,800 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 $49.00 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.) 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 Revenue Expenses: 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 per Month $ 20,800 Cost per Repair-Hour Wages and salaries Parts and supplies $ 15.00 2$ $ 7.60 $ 0.35 $ 1.70 Equipment depreciation Truck operating expenses Rent Administrative expenses $ 2,740 $ 5,710 $ 4,650 $ 3,830 $ 0.50 For example, wages and salaries should be $20,800 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 $49.00 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.) 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 Revenue Expenses: 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
per Month
$ 20,800
Cost per
Repair-Hour
Wages and salaries
Parts and supplies
$ 15.00
2$
$ 7.60
$ 0.35
$ 1.70
Equipment depreciation
Truck operating expenses
Rent
Administrative expenses
$ 2,740
$ 5,710
$ 4,650
$ 3,830
$ 0.50
For example, wages and salaries should be $20,800 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 $49.00 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.)
Transcribed Image Text: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
Revenue
Expenses:
Wages and salaries
Parts and supplies
Equipment depreciation
Truck operating expenses
Rent
Administrative expenses
Total expense
Net operating income
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