Jake\'s Roof Repair has provided the following data concerning its costs Fixed C
ID: 2565473 • Letter: J
Question
Jake's Roof Repair has provided the following data concerning its costs Fixed Cost Cost per per Month Repair-Hour Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses $15.00 $7.70 0.55 1.70 $20,600 $ 2,700 $5,720 $4,640 $3,890 $0.80 For example, wages and salaries should be $20,600 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 $45.00 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 en Administrative expenses Total expense Net operating incomeExplanation / Answer
Jaak's Roof Repair Activity Variances For the Month Ended May 31 Planning Budget Flexible Budget Activity variance Repair Hours(A) 2,500 2,400 Revenue(45*A) 112,500 108,000 4,500 U Expenses Wages And Salaries(20600+(A*15) 58,100 56,600 1,500 F Parts and Supplies(A*7.70) 19,250 18,480 770 F Equipment Depreciation(2700+(A*0.55) 4,075 4,020 55 F Truck Operating expenses(5720+(A*1.70) 9,970 9,800 170 F Rent 4,640 4,640 - None Administrative expenses(3890+(A*0.80) 5,890 5,810 80 F Total Expenses 101,925 99,350 2,575 F Net Operating income 10,575 8,650 1,925 U U = Unfavourable F = Favourable None = No Effect
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