Fixed Cost per Month $21,000 Wages and salaries Parts and supplies Equipment dep

Question

Fixed Cost per Month $21,000 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Cost per Repair-Hour $15.00 $7.20 $ 0.55 $ 1.70 $ 2,720 $ 5,790 $ 4,680 $ 3,830 $0.60 For example, wages and salaries should be $21,000 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 $54.00 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 Flexible Budget Planning Budget Activity Variances Repair-hours Revenue Expenses Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Total expense Net operating income

Explanation / Answer

Flexible budget Planning budget Activity variances Repair-hours 2900 3000 Revenue 156600 162000 5400 U Expenses: Wages and salaries 64500 66000 1500 F Parts and supplies 20880 21600 720 F Equipment depreciation 4315 4370 55 F Truck operating expenses 10720 10890 170 F Rent 4680 4680 0 None Administrative expenses 5570 5630 60 F Total expense 110665 113170 2505 F Net operating income 45935 48830 2895 U

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

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