per Month $21,400 Repair-Hour Wages and salaries Parts and suPplien Equipment depreciation Truck operating expenses $15.00 $ 7.80 $ 0.50 $ 1.80 $ 2,740 $ 5,730 $ 4,670 $ 3,860 Rent Administrative expenses $ 0.60 For example, wages and salaries should be $21,400 plus $15.00 per repair-hour. The company expected to work 3,000 repair-hours in May, but actually worked 2,900 repair-hours. The company expects its sales to be $50.00 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

per Month $21,400 Repair-Hour Wages and salaries Parts and suPplien Equipment depreciation Truck operating expenses $15.00 $ 7.80 $ 0.50 $ 1.80 $ 2,740 $ 5,730 $ 4,670 $ 3,860 Rent Administrative expenses $ 0.60 For example, wages and salaries should be $21,400 plus $15.00 per repair-hour. The company expected to work 3,000 repair-hours in May, but actually worked 2,900 repair-hours. The company expects its sales to be $50.00 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

Name: Repair-Hour$15.00$ 7.80$ 0.50$ 1.80per Month$ 21,400Wages and salarie
Uploaded: 2024-03-05T11:50:36.000Z
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Description: Repair-Hour$15.00$ 7.80$ 0.50$ 1.80per Month$ 21,400Wages and salariesParts and suppliesEquipment depreciationTruck operating expenses$ 2,740$ 5,730$ 4,670$ 3,860RentAdministrative expenses$ 0.60For example, wages and salaries should be $21,400 plus

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

Topic Video

Question

Repair-Hour
$15.00
$ 7.80
$ 0.50
$ 1.80
per Month
$ 21,400
Wages and salaries
Parts and supplies
Equipment depreciation
Truck operating expenses
$ 2,740
$ 5,730
$ 4,670
$ 3,860
Rent
Administrative expenses
$ 0.60
For example, wages and salaries should be $21,400 plus $15.00 per repair-hour. The company expected to work 3,000 repair-hours in
May, but actually worked 2,900 repair-hours. The company expects its sales to be $50.00 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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