Jake's Roof Repair has provided the following data concerning its costs: Wages and salaries Parts and supplies Equipment depreciation Fixed Cost per Month Cost per Repair-Hour $ 15.00 $ 7.70 $ 21,100 $ 2,730 $ 0.50 Truck operating expenses $ 5,790 $ 1.60 $ 4,690 $ 3,860 $ 0.70 Rent Administrative expenses For example, wages and salaries should be $21,100 plus $15.00 per repair-hour. The company expected to work 2,800 repair-hours In May, but actually worked 2,700 repair-hours. The company expects its sales to be $45.00 per repair-hour. Required: Compute the company's activity variances for May. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). 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: Wages and salaries Parts and supplies Equipment depreciation Fixed Cost per Month Cost per Repair-Hour $ 15.00 $ 7.70 $ 21,100 $ 2,730 $ 0.50 Truck operating expenses $ 5,790 $ 1.60 $ 4,690 $ 3,860 $ 0.70 Rent Administrative expenses For example, wages and salaries should be $21,100 plus $15.00 per repair-hour. The company expected to work 2,800 repair-hours In May, but actually worked 2,700 repair-hours. The company expects its sales to be $45.00 per repair-hour. Required: Compute the company's activity variances for May. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). 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
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 4EA: Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on...
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![Jake's Roof Repair has provided the following data concerning its costs:
wages and salaries
Parts and supplies
Equipment depreciation
Fixed Cost
per Month
Cost per
Repair-Hour
$ 15.00
$ 7.70
$ 21,100
$ 2,730
$ 0.50
Truck operating expenses
Rent
$ 5,790
$ 1.60
$ 4,690
$ 3,860
$ 0.70
Administrative expenses
For example, wages and salaries should be $21,100 plus $15.00 per repair-hour. The company expected to work 2,800 repair-hours in
May, but actually worked 2,700 repair-hours. The company expects its sales to be $45.00 per repair-hour.
Required:
Compute the company's activity variances for May.
Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero
varlance). 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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F82a55757-d2b3-426e-a054-70e5fa89af6d%2F753f3f0d-f743-43b9-8e23-7ecffcf061b4%2Ftq4f2us_processed.png&w=3840&q=75)
Transcribed Image Text:Jake's Roof Repair has provided the following data concerning its costs:
wages and salaries
Parts and supplies
Equipment depreciation
Fixed Cost
per Month
Cost per
Repair-Hour
$ 15.00
$ 7.70
$ 21,100
$ 2,730
$ 0.50
Truck operating expenses
Rent
$ 5,790
$ 1.60
$ 4,690
$ 3,860
$ 0.70
Administrative expenses
For example, wages and salaries should be $21,100 plus $15.00 per repair-hour. The company expected to work 2,800 repair-hours in
May, but actually worked 2,700 repair-hours. The company expects its sales to be $45.00 per repair-hour.
Required:
Compute the company's activity variances for May.
Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero
varlance). 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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