Saved 7 Exercise 9-7 (Algo) Flexible Budgets and Activity Variances [LO9-1, LO9-2] Jake's Roof Repair has provided the following data concerning its costs: 1 points Wages and salaries Fixed Cost Cost per per Month Repair-Hour Parts and supplies Equipment depreciation $ 21,300 $ 15.00 $ 7.60 $ 2,730 eBook Truck operating expenses Rent $ 0.55 $ 5,710 $ 1.80 $ 4,680 $ 3,890 $ 0.50 Hint References Administrative expenses For example, wages and salaries should be $21,300 plus $15.00 per repair-hour. The company expected to work 2,500 repair-hours in May, but actually worked 2,400 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 Mc Revenue Expenses: Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Total expense Net operating income Hel
Saved 7 Exercise 9-7 (Algo) Flexible Budgets and Activity Variances [LO9-1, LO9-2] Jake's Roof Repair has provided the following data concerning its costs: 1 points Wages and salaries Fixed Cost Cost per per Month Repair-Hour Parts and supplies Equipment depreciation $ 21,300 $ 15.00 $ 7.60 $ 2,730 eBook Truck operating expenses Rent $ 0.55 $ 5,710 $ 1.80 $ 4,680 $ 3,890 $ 0.50 Hint References Administrative expenses For example, wages and salaries should be $21,300 plus $15.00 per repair-hour. The company expected to work 2,500 repair-hours in May, but actually worked 2,400 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 Mc Revenue Expenses: Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Total expense Net operating income Hel
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 9-7 (Algo) Flexible Budgets and Activity Variances [LO9-1, LO9-2]
Jake's Roof Repair has provided the following data concerning its costs:
1
points
Wages and salaries
Fixed Cost Cost per
per Month Repair-Hour
Parts and supplies
Equipment depreciation
$ 21,300
$ 15.00
$ 7.60
$ 2,730
eBook
Truck operating expenses
Rent
$ 0.55
$ 5,710
$ 1.80
$ 4,680
$ 3,890
$ 0.50
Hint
References
Administrative expenses
For example, wages and salaries should be $21,300 plus $15.00 per repair-hour. The company expected to work 2,500 repair-hours in
May, but actually worked 2,400 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
Mc
Revenue
Expenses:
Wages and salaries
Parts and supplies
Equipment depreciation
Truck operating expenses
Rent
Administrative expenses
Total expense
Net operating income
Hel](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F325216ef-1d1a-45ee-baad-9e803c891407%2Fb9add8de-8c40-4500-bb20-e72cd65f5307%2Fn95l6kg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Saved
7
Exercise 9-7 (Algo) Flexible Budgets and Activity Variances [LO9-1, LO9-2]
Jake's Roof Repair has provided the following data concerning its costs:
1
points
Wages and salaries
Fixed Cost Cost per
per Month Repair-Hour
Parts and supplies
Equipment depreciation
$ 21,300
$ 15.00
$ 7.60
$ 2,730
eBook
Truck operating expenses
Rent
$ 0.55
$ 5,710
$ 1.80
$ 4,680
$ 3,890
$ 0.50
Hint
References
Administrative expenses
For example, wages and salaries should be $21,300 plus $15.00 per repair-hour. The company expected to work 2,500 repair-hours in
May, but actually worked 2,400 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
Mc
Revenue
Expenses:
Wages and salaries
Parts and supplies
Equipment depreciation
Truck operating expenses
Rent
Administrative expenses
Total expense
Net operating income
Hel
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