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 7.50 0.45 $ 1.60 20,700 $ 2,730 $ 5,740 $ 4,680 $ 3,830 $ 0.60 For example, wages and salaries should be $20,700 plus $15.00 per repair-hour. The company expected to work 2,700 repair-hours in May, but actually worked 2,600 repair-hours. The company expects its sales to be $47.00 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.)

Explanation / Answer

Budeted Actuals Activity Variance Reapir Hours 2700 2600 Revenue 126900 122200 4700 U Expenses: - Wages & Salaries 61200 59700 1500 F - Parts & Supplies 20250 19500 750 F - Equipment Depreciation 3945 3900 45 F - Truck Operating Expenses 10060 9900 160 F - Rent 4680 4680 0 None - Administative Expenses 5450 5390 60 F Total Expense 105585 103070 2515 F Net Operating Income 21315 19130 2185 U

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