Jake's Roof Repair has provided the following data concerning its costs: Wages and salaries Parts and supplies. Equipment depreciation Fixed Cost per Month $21,000 Cost per Repair-Hour $15.00 $ 7.10 $ 2,730 $ 0.40 Truck operating expenses Rent $ 5,760 $ 1.50 $ 4,640 Administrative expenses $ 3,830 $ 0.70 For example, wages and salaries should be $21,000 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 $44.00 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.)
Jake's Roof Repair has provided the following data concerning its costs: Wages and salaries Parts and supplies. Equipment depreciation Fixed Cost per Month $21,000 Cost per Repair-Hour $15.00 $ 7.10 $ 2,730 $ 0.40 Truck operating expenses Rent $ 5,760 $ 1.50 $ 4,640 Administrative expenses $ 3,830 $ 0.70 For example, wages and salaries should be $21,000 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 $44.00 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.)
Cornerstones of Cost Management (Cornerstones Series)
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ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...
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![Jake's Roof Repair has provided the following data concerning its costs:
Wages and salaries
Fixed Cost
per Month
Cost per
Repair-Hour
$15.00
$21,000
Parts and supplies
$ 7.10
Equipment depreciation
$ 2,730
$ 0.40
Truck operating expenses
$ 5,760
$ 1.50
Rent
$ 4,640
Administrative expenses
$ 3,830
$ 0.70
For example, wages and salaries should be $21,000 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 $44.00 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.)
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0098864d-7688-4ffb-9a03-ab272e8301b6%2F7f76150b-8120-4ba4-996f-20236ba52770%2Fdvkngt_processed.png&w=3840&q=75)
Transcribed Image Text:Jake's Roof Repair has provided the following data concerning its costs:
Wages and salaries
Fixed Cost
per Month
Cost per
Repair-Hour
$15.00
$21,000
Parts and supplies
$ 7.10
Equipment depreciation
$ 2,730
$ 0.40
Truck operating expenses
$ 5,760
$ 1.50
Rent
$ 4,640
Administrative expenses
$ 3,830
$ 0.70
For example, wages and salaries should be $21,000 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 $44.00 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.)
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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