Jake’s Roof Repair has provided the following data concerning its costs: For exa

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 $47.00 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.)

Please show work, disregard the info in the table it's only to shape the table, please complete the table and show work.

Fixed Cost
per Month Cost per Repair-Hour

Explanation / Answer

Jake's Roof Repair

Activity variances

For the month ended May 31

Flexible Budget Planning Budget Activity Variances Favorable / Unfavorable Repair hours 2,500 2,600 Sales $ 117,500 $ 122,200 $ 4,700 Unfavorable Wages and salaries $ 58,300 $ 59,800 $ 1,500 Unfavorable Parts and supplies $ 18,500 $ 19,240 $ 740 Unfavorable Equipment depreciation $ 3,895 $ 3,940 $ 45 Unfavorable Truck operating expenses $ 9,960 $ 10,130 $ 170 Unfavorable Rent $ 4,620 $ 4,620 None None Administrative expenses $ 5,550 $ 5,620 $ 70 Unfavorable Total expense $100,825 $103,350 $ 2,525 Net operating income $16,675 $ 18,850 $ 2,175 Unfavorable

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