Jake\'s Roof Repair has provided the following data concerning its costs Fixed C

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 $ 7.40 $ 0.35 $ 1.60 $20,900 $ 2,710 $ 5,720 $ 4,670 3,880 $ 0.70 For example, wages and salaries should be $20,900 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 $48.00 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 Rent Administrative expenses Total expense Net operating income

Explanation / Answer

Calculate activity variance :

Revenue 4800 U Expenses Wages and salaries 1500 F Parts and supplies 740 F Equipment depreciation 35 F Truck operating expenses 160 F Rent None Administrative expenses 70 F Total expense 2505 F Net operating income 2295 U

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