Jake's Roof Repair provided the following data concerning its costs: Fixed Cost Cost per per Month Repair-Hour Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses $ 21,200 $ 15.00 $ 7.10 $ 2,770 $ 0.45 $ 5,720 $1.60 $ 4,640 $ 3,880 $ 0.50 For example, wages and salaries should be $21,200 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 $54.00 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 variance). Input all amounts as positive values. Revenue Jake's Roof Repair Activity Variances For the Month Ended May 31 Expenses: Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Total expenses Net operating income

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Jake's Roof Repair provided the following data concerning its costs:
Fixed Cost Cost per
per Month Repair-Hour
Wages and salaries
Parts and supplies
Equipment depreciation
$ 21,200
$ 15.00
$ 7.10
$ 2,770
$ 0.45
Truck operating expenses
Rent
$ 5,720
$ 1.60
$ 4,640
$ 3,880
$ 0.50
Administrative expenses
For example, wages and salaries should be $21,200 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 $54.00 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 (I.e., zero
variance). 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 expenses
Net operating income
Transcribed Image Text:Jake's Roof Repair provided the following data concerning its costs: Fixed Cost Cost per per Month Repair-Hour Wages and salaries Parts and supplies Equipment depreciation $ 21,200 $ 15.00 $ 7.10 $ 2,770 $ 0.45 Truck operating expenses Rent $ 5,720 $ 1.60 $ 4,640 $ 3,880 $ 0.50 Administrative expenses For example, wages and salaries should be $21,200 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 $54.00 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 (I.e., zero variance). 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 expenses Net operating income
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