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.)
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter23: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 21E: Income statement indicating standard cost variances The following data were taken from the records...
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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.)
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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