Question

Exercise 9-8 Flexible Budgets and Activity Variances (LO9-1, LO9-2] Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost per Month $ 21,300 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Cost per Repair-Hour $15.00 $ 7.70 $ 0.35 $ 1.60 $ 2,740 $ 5,780 $ 4.650 $ 3,890 $ 0.70 For example, wages and salaries should be $21,300 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 $46.00 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 (.e., zero variance). Input all amounts as positive values.)

correct answers only please

Answer 1

Jakes Roof Repair Activity Variance For the month ended May 31 Flexible Budget Planning Budget Activity Variances 124,200.00 $ 119,600.00 $ Revenue 4,600.00 U Expenses Wages and salaries $ $ 61,800.00 $ 60,300.00$ Unfavourable 1,500.00 F U 20,790.00 $ 3,685.00 $ parts and supplies 20,020.00 $ Favourable 770.00 F F 3,650.00 None No Effect Equipment Depreciation 35.00 F Truck operating expenses 10,100.00 $ 4,650.00$ $ $ 5,780.00 $ $ 106,805.00 $ 9,940.00 $ $ 160.00 F 4,650.00 $ Rent None Administrative expenses 5,710.00 $ 104,270.00 $ 70.00 F Total Expense 2,535.00 F $ 17,395.00 $ Net Operating income 15,330.00 $ 2,065.00 U Working 2600 46 2700*46 Revenue Expenses Wages and salaries parts and supplies Equipment Depreciation Truck operating expenses 21300 15*2600 21300+15*2700 2700*7.7 2600*7.7 2740+0.35*2700 2740+0.35*2600 5780-1.6*2700 5780+1.6*2600 $ 3890+0.7*2700 4,650.00$ Rent 4,650.00 Administrative expenses 890+0.7*2600 Note Only Yellow Colour part is solution you should fill that in the blanks