Need help solving Harolds Roof Repair has provided the following data concerning

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Harolds Roof Repair has provided the following data concerning its costs:

For example, wages and salaries should be $20,700 plus $15.00 per repair-hour. The company expected to work 2,600 repair-hours in June, but actually worked 2,500 repair-hours. The company expects its sales to be $45.00 per repair-hour.

Compute the companys activity variances for June. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)

Fixed Cost
per Month Cost per Repair-Hour

Explanation / Answer

Explanation: Harold's Roof Repair
Activity Variances
For the Month Ended June 30
Planning
Budget Flexible
Budget Activity Variances   Repair-hours (q)
2,600     
2,500


  Revenue ($46.00q) $ 119,600      $ 115,000   $ 4,600    U

  Expenses:






     Wages and salaries ($21,400 + $15.00q)
60,400     
58,900
1,500    F      Parts and supplies ($7.00q)
18,200     
17,500
700    F      Equipment depreciation ($2,740 + $.30q)
3,520     
3,490
30    F      Truck operating expenses ($5,780 + $1.50q)
9,680     
9,530
150    F      Rent ($4,680)
4,680     
4,680
0    None      Administrative expenses ($3,820 + $.40q)
4,860     
4,820
40    F

  Total expense
101,340     
98,920
2,420    F

  Net operating income $ 18,260      $ 16,080 $ 2,180    U

Harold's Roof Repair
Activity Variances
For the Month Ended June 30
Planning
Budget Flexible
Budget Activity Variances   Repair-hours (q)
2,600     
2,500


  Revenue ($46.00q) $ 119,600      $ 115,000   $ 4,600    U

  Expenses:






     Wages and salaries ($21,400 + $15.00q)
60,400     
58,900
1,500    F      Parts and supplies ($7.00q)
18,200     
17,500
700    F      Equipment depreciation ($2,740 + $.30q)
3,520     
3,490
30    F      Truck operating expenses ($5,780 + $1.50q)
9,680     
9,530
150    F      Rent ($4,680)
4,680     
4,680
0    None      Administrative expenses ($3,820 + $.40q)
4,860     
4,820
40    F

  Total expense
101,340     
98,920
2,420    F

  Net operating income $ 18,260      $ 16,080 $ 2,180    U

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