11 Wilson Brothers is an appliance repair company and uses service alls as s bel

Question

11 Wilson Brothers is an appliance repair company and uses service alls as s below in budgeting costs each month: of vi The Fixed Cost Variable Cost per Month per Service Call Salaries, Wages&Benefits; $ 32.300 S 20.50 12.50 3.40 Parts &Supplies; Vehicle Expenses 1.200 9,700 Administratvie Expenses5.000610 5 48.200 3650 80 calls due to sowy Although the company budgeted to make 210 service calls in the month of November, they actualhy only made T weather. Actual costs for November are shown helow Salaries, Wages&Benefits; Parts& Supplies Vehicle Expenses Administratvie Expenses 40,445 S 30,105 5 16.800 s5,015 Based on this data, the November activity variance for Salaries Wages & Bens od he cest e A. S 615 Unfavorable B. S 615 Favorable C. S 3,840 Unfavorable D. S4,455 Unfavorable E S 4.455 Favorable

Explanation / Answer

Calculate activity variance under salary and wages expense :

Static budget = (210*20.5+32300) = 36605

Flexible budget = (180*20.5+32300) = 35990

Activity variance = 36605-35990 = 615 F

so answer is b) $615 favorable

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