Question

Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost per Month $ 20,800 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Cost per Repair-Hour $16.00 $ 7.60 $ 0.35 $ 1.80 Book Rent $ 2,750 $ 5,790 $ 4.620 $ 3,820 Administrative expenses $ 0.60 Print For example, wages and salaries should be $20,800 plus $16.00 per repair-hour. The company expected to work 2,900 repair-hours in May, but actually worked 2,800 repair-hours. The company expects its sales to be $52.00 per repair hour. erences 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.) Jake's Roof Repair Activity Variances For the Month Ended May 31 < Prey 5 of 6 !!! Next >

Answer 1

Particulars	Fixed Cost per month	Cost per repair Hour	Budgeted Variance cost	Actual Variable Cost per month	Total Budgeted Cost per month	Total Actual Cost per month
Wages & Salaries	20800	16	46400	44800	67200	65600
Part & Supplies		7.6	22040	21280	22040	21280
Equipment Depreciation	2750	0.35	1015	980	3765	3730
Truck operating Expenses	5790	1.8	5220	5040	11010	10830
Rent	4620			0	4620	4620
Administrative Expenses	3820	0.6	1740	1680	5560	5500
Expected Repair hours	2900
Actual Repair Hours	2800
Sales	$52 per Repair Hour
Jake's Roof Repair
Activity variances
For the month ended May 31
	Budgeted	Actual	Variances(Budgeted-Actual)	Remark
Revenue	150800	145600	5200	U
Expenses:
Wages ad Salaries	67200	65600	1600	U
Parts ans Supplies	22040	21280	760	U
Equipment Depreciation	3765	3730	35	U
Truck Operating Expenses	11010	10830	180	U
Rent	4620	4620	0	None
Administrative Expenses	5560	5500	60	U
Total Expense	114195	111560	2635	U
Net Operating Income	36605	34040	2565	U