**Activity Variance Analysis for Jake's Roof Repair**This example focuses on calculating activity variances for Jake's Roof Repair for the month of May. Below are the details necessary for this analysis:**Budgeted Costs:**- **Wages and Salaries:** - Per Month: $21,000 - Per Repair-Hour: $15.00- **Parts and Supplies:** - Per Month: $2,798 - Per Repair-Hour: $7.30- **Equipment Depreciation:** - Per Month: $5,780 - Per Repair-Hour: $1.80- **Truck Operating Expenses:** - Per Month: $3,420 - Per Repair-Hour: $1.20- **Rent:** - Per Month: $4,620- **Administrative Expenses:** - Per Month: $3,880 - Per Repair-Hour: $0.80The company anticipated working 2,800 repair-hours but completed only 2,700. The expected sales are $53.00 per repair-hour.**Required:**Compute the activity variances for May by determining the effect of each variance, indicated as:- "F" for favorable- "U" for unfavorable- "None" for no effect (zero variance)Enter all amounts as positive values.**Diagram Explanation:**The table below summarizes the activity variances to be calculated:1. **Revenue**: Enter expected versus actual revenue.2. **Expenses**: - Record and compare wages and salaries, parts and supplies, equipment depreciation, and truck operating expenses. - Total the expenses and calculate the net operating income.The task is to identify variances from expected values to evaluate performance accurately.

Name: **Activity Variance Analysis for Jake's Roof Repair**This example foc
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Description: **Activity Variance Analysis for Jake's Roof Repair**This example focuses on calculating activity variances for Jake's Roof Repair for the month of May. Below are the details necessary for this analysis:**Budgeted Costs:**- **Wages and Salaries:**

Flexible budgets are calculated by multiplying standard variable amounts with actual units. The…

Business

Accounting

Wages and salaries Parts and supplies Equipment depreciation. Truck operating expenses Rent Administrative expenses Revenue Expenses per Month $ 21,000 For example, wages and salaries should be $21,000 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 $53.00 per repair-hour. $ 2,790 $5,780 $ 4,620 $ 3,880 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.) Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Jake's Roof Repair Activity Variances For the Month Ended May 31 Administrative expenses Total expense Net operating income Repair-Hour $15.00 $ 7.30 $ 0.35 $ 1.80 $ 0.80

Wages and salaries Parts and supplies Equipment depreciation. Truck operating expenses Rent Administrative expenses Revenue Expenses per Month $ 21,000 For example, wages and salaries should be $21,000 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 $53.00 per repair-hour. $ 2,790 $5,780 $ 4,620 $ 3,880 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.) Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Jake's Roof Repair Activity Variances For the Month Ended May 31 Administrative expenses Total expense Net operating income Repair-Hour $15.00 $ 7.30 $ 0.35 $ 1.80 $ 0.80

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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