Jake\'s Roof Repair has provided the following data concerning its costs Fixed C

Question

Jake's Roof Repair has provided the following data concerning its costs Fixed Cost per Month $. 21,400 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Cost per Repair-Hour $15.00 $ 7.30 0.40 1.68 $ 2,72e 5,770 $ 4,68e $ 3,80e $ 0.60 For example, wages and salaries should be $21,400 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 $49.00 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

Explanation / Answer

Flexible budget Planning budget Activity variances Revenue 117600 122500 4900 U Expenses: Wages and salaries 57400 58900 1500 F Parts and supplies 17520 18250 730 F Equipment depreciation 3680 3720 40 F Truck operating expenses 9610 9770 160 F Rent 4680 4680 0 F Administrative expenses 5240 5300 60 F Total expenses 98130 100620 2490 F Net operating income 19470 21880 2410 U

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