ake’s Roof Repair has provided the following data concerning its costs: Fixed Cost per Month Cost per Repair-Hour Wages and salaries $ 20,500 $ 15.00 Parts and supplies $ 7.40 Equipment depreciation $ 2,750 $ 0.50 Truck operating expenses $ 5,790 $ 1.50 Rent $ 4,640 Administrative expenses $ 3,810 $ 0.50 For example, wages and salaries should be $20,500 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 $51.00 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.)
ake’s Roof Repair has provided the following data concerning its costs: Fixed Cost per Month Cost per Repair-Hour Wages and salaries $ 20,500 $ 15.00 Parts and supplies $ 7.40 Equipment depreciation $ 2,750 $ 0.50 Truck operating expenses $ 5,790 $ 1.50 Rent $ 4,640 Administrative expenses $ 3,810 $ 0.50 For example, wages and salaries should be $20,500 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 $51.00 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.)
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter25: Departmental Accounting
Section: Chapter Questions
Problem 9SPA: INCOME STATEMENT WITH DEPART MENTAL DIRECT OPERATING MARGIN AND TOTAL OPERATING INCOME Durwood...
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Question
Jake’s Roof Repair has provided the following data concerning its costs:
Fixed Cost per Month | Cost per Repair-Hour | |
---|---|---|
Wages and salaries | $ 20,500 | $ 15.00 |
Parts and supplies | $ 7.40 | |
Equipment |
$ 2,750 | $ 0.50 |
Truck operating expenses | $ 5,790 | $ 1.50 |
Rent | $ 4,640 | |
Administrative expenses | $ 3,810 | $ 0.50 |
For example, wages and salaries should be $20,500 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 $51.00 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.)
![Revenue
Expenses:
Jake's Roof Repair
Activity Variances
For the Month Ended May 31
Wages and salaries
Parts and supplies
Equipment depreciation
Truck operating expenses
Rent
Administrative expenses
Total expense
Net operating income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2b407a00-5509-426c-a7d3-3f0a1f82a78d%2F895d0c95-f083-4ec4-abff-d3435c950de1%2Fkiyqduk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Revenue
Expenses:
Jake's Roof Repair
Activity Variances
For the Month Ended May 31
Wages and salaries
Parts and supplies
Equipment depreciation
Truck operating expenses
Rent
Administrative expenses
Total expense
Net operating income
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