Jake’s Roof Repair has provided the following data concerning its costs: For exa
ID: 2460995 • Letter: J
Question
Jake’s Roof Repair has provided the following data concerning its costs:
For example, wages and salaries should be $20,800 plus $15.00 per repair-hour. The company expected to work 2,600 repair-hours in May, but actually worked 2,500 repair-hours. The company expects its sales to be $54.00 per repair-hour.
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 has provided the following data concerning its costs:
Explanation / Answer
Jake's Roof Repair Activity Variance Report for the Month of May Details Revenue/Cost formula Planning Budget Flexible Budget Activity Variance=Planned -Flexible budget F/U Fixed Per Repair Hr Reapir Hours 2,600 2,500 Revenue 54 140,400 135,000 5,400 U Wages & Salaries 20,800 15 59,800 58,300 1,500 F Parts & Supplies 7.70 20,020 19,250 770 F Equipment Depreciation 2,740 0.55 4,170 4,115 55 F Truck Operating Expenses 5,730 1.80 10,410 10,230 180 F Rent 4,680 4,680 4,680 - Admin Expenses 3,890 0.70 5,710 5,640 70 F Total Expenses 104,790 102,215 2,575 F Net Operating Income 35,610 32,785 2,825 U
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