Jake’s Roof Repair has provided the following data concerning its costs: For exa
ID: 2579164 • Letter: J
Question
Jake’s Roof Repair has provided the following data concerning its costs:
For example, wages and salaries should be $21,200 plus $15.00 per repair-hour. The company expected to work 2,800 repair-hours in May, but actually worked 2,700 repair-hours. The company expects its sales to be $50.00 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.)
Fixed Costper Month Cost per
Repair-Hour Wages and salaries $ 21,200 $ 15.00 Parts and supplies $ 7.60 Equipment depreciation $ 2,710 $ 0.45 Truck operating expenses $ 5,760 $ 1.60 Rent $ 4,690 Administrative expenses $ 3,810 $ 0.80 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
Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up Statementshowing Computations Paticulars 2800Hours 2700 hours Variance F or U Revenue 140,000.00 135,000.00 5,000.00 U Expenses: Wages and Salaries 63,200.00 61,700.00 1,500.00 F Part and supplies 21,280.00 20,520.00 760.00 F Equipment Depreciation 3,970.00 3,925.00 45.00 F Truck operating expenses 10,240.00 10,080.00 160.00 F Rent 4,690.00 4,690.00 - F Administrative expenses 6,050.00 5,970.00 80.00 F Total Expenses 109,430.00 106,885.00 2,545.00 F Net operating Income 30,570.00 28,115.00 2,455.00 U
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