5 Jake\'s Roof Repair has provided the following data concerning its costs: 142
ID: 2432526 • Letter: 5
Question
5 Jake's Roof Repair has provided the following data concerning its costs: 142 points $ 21,500 $15.00 s 7.50 s 0.50 s 1.70 Equipsent depreciation 5,750 4,630 3,890 Rent s 0.70 For example, wages and salaries should be $21,500 plus $15.00 per repair-hour. The company expected to work 2700 repair-hours in References May, but actually worked 2,600 repair-hours. The company expects its sales to be $54.00 per repair-hour 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 varlance). Input all amounts as positive values) Activilty Variances For the Month Ended May 31 Expenses:Explanation / Answer
Answers
Flexible Budget data for 2600 repairs hour
Planning Budget Data for 2700 repairs hours
Variances
Revenues
$ 140,400.00
$ 145,800.00
$ 5,400.00
Unfavourable
Expenses:
Wages & Salaries
$ 60,500.00
$ 62,000.00
$ 1,500.00
Favourable
Parts and Supplies
$ 19,500.00
$ 20,250.00
$ 750.00
Favourable
Equipment Depreciation
$ 4,040.00
$ 4,090.00
$ 50.00
Favourable
Truck Operating Expenses
$ 10,170.00
$ 10,340.00
$ 170.00
Favourable
Rent
$ 4,630.00
$ 4,630.00
$ -
NONE
Administrative expenses
$ 5,710.00
$ 5,780.00
$ 70.00
Favourable
Total Expenses
$ 104,550.00
$ 107,090.00
$ 2,540.00
Favourable
Net Operating Income
$ 35,850.00
$ 38,710.00
$ 2,860.00
Unfavourable
Flexible Budget data for 2600 repairs hour
Planning Budget Data for 2700 repairs hours
Variances
[A]
[B]
[Difference between ‘A’ and ‘B’]
Revenues
=2600*54
=2700*54
[Difference between ‘A’ and ‘B’]
Unfavourable
Expenses:
[Difference between ‘A’ and ‘B’]
Wages & Salaries
=21500+(2600*15)
=21500+(2700*15)
[Difference between ‘A’ and ‘B’]
Favourable
Parts and Supplies
=7.5*2600
=7.5*2700
[Difference between ‘A’ and ‘B’]
Favourable
Equipment Depreciation
=2740+(2600*0.5)
=2740+(2700*0.5)
[Difference between ‘A’ and ‘B’]
Favourable
Truck Operating Expenses
=5750+(2600*1.7)
=5750+(2700*1.7)
[Difference between ‘A’ and ‘B’]
Favourable
Rent
4630
4630
[Difference between ‘A’ and ‘B’]
NONE
Administrative expenses
=3890+(2600*0.7)
=3890+(2700*0.7)
[Difference between ‘A’ and ‘B’]
Favourable
Total Expenses
Total Expenses
Total Expenses
[Difference between ‘A’ and ‘B’]
Favourable
Net Operating Income
Net Operating Income
Net Operating Income
[Difference between ‘A’ and ‘B’]
Unfavourable
Flexible Budget data for 2600 repairs hour
Planning Budget Data for 2700 repairs hours
Variances
Revenues
$ 140,400.00
$ 145,800.00
$ 5,400.00
Unfavourable
Expenses:
Wages & Salaries
$ 60,500.00
$ 62,000.00
$ 1,500.00
Favourable
Parts and Supplies
$ 19,500.00
$ 20,250.00
$ 750.00
Favourable
Equipment Depreciation
$ 4,040.00
$ 4,090.00
$ 50.00
Favourable
Truck Operating Expenses
$ 10,170.00
$ 10,340.00
$ 170.00
Favourable
Rent
$ 4,630.00
$ 4,630.00
$ -
NONE
Administrative expenses
$ 5,710.00
$ 5,780.00
$ 70.00
Favourable
Total Expenses
$ 104,550.00
$ 107,090.00
$ 2,540.00
Favourable
Net Operating Income
$ 35,850.00
$ 38,710.00
$ 2,860.00
Unfavourable
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