Jake’s Roof Repair has provided the following data concerning its costs: For exa
ID: 2562579 • Letter: J
Question
Jake’s Roof Repair has provided the following data concerning its costs:
For example, wages and salaries should be $21,500 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 $53.00 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 = 2500 Hours Planning Budget = 2600 Hours Activity Variances Repair-hours 2,500.00 2,600.00 100.00 U Revenue 132,500.00 137,800.00 5,300.00 U Expenses: Wages and salaries 59,000.00 60,500.00 1,500.00 F Parts and supplies 18,000.00 18,720.00 720.00 F Equipment depreciation 3,960.00 4,010.00 50.00 F Truck operating expenses 9,960.00 10,130.00 170.00 F Rent 4,660.00 4,660.00 - None Administrative expenses 5,320.00 5,380.00 60.00 F Total expense 100,900.00 103,400.00 2,500.00 F Net operating income 31,600.00 34,400.00 2,800.00 U
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