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 $21,300 plus $15.00 per repair-hour. The company expected to work 3,000 repair-hours in May, but actually worked 2,900 repair-hours. The company expects its sales to be $51.00 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 Variances For the Month Ended May 31 Flexible Budget Planning Budget Activity Variances Repair-hours 2900 3000 Revenue 147900 153000 5100 F Expenses: Wages and salaries 64800 66300 1500 U Parts and supplies 21170 21900 730 U Equipment depreciation 3890 3930 40 U Truck operating expenses 11000 11180 180 U Rent 4670 4670 0 None Administrative expenses 5600 5660 60 U Total expense 111130 113640 2510 U Net operating income 36770 39360 2590 F

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.