Sagar Jake's Roof Repair has provided the following data concerning its costs:Fixed CostCost perper Month Repair-Hour$ 21,200$15.00$7.20Wages and salariesParts and suppliesEquipment depreciationTruck operating expensesRentAdministrative expensesFor example, wages and salaries should be $21,200 plus $15.00 per repair-hour. The company expected to work 2,700 repair-hours inMay, but actually worked 2,600 repair-hours. The company expects its sales to be $52.00 per repair-hour.RevenueExpenses:$ 2,770$ 5,790$ 4,640$ 3,800Required:Compute the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)Jake's Roof RepairActivity VariancesFor the Month Ended May 31Wages and salariesParts and suppliesEquipment depreciationTruck operating expensesRentAdministrative expensesTotal expenseNet operating income$ 0.35$ 1.50$0.40

Activity variances is computed as = Flexible budget amount - Static budget amount

Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost per Month $ 21,200 Cost per Repair-Hour $15.00 $7.20 $ 0.35 $ 1.50 $ 0.40 Wages and salaries Parts and supplies. Equipment depreciation Truck operating expenses Rent Administrative expenses For example, wages and salaries should be $21,200 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 $52.00 per repair-hour. $ 2,770 $5,790 $4,640 $3,800 Required: Compute the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for

Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost per Month $ 21,200 Cost per Repair-Hour $15.00 $7.20 $ 0.35 $ 1.50 $ 0.40 Wages and salaries Parts and supplies. Equipment depreciation Truck operating expenses Rent Administrative expenses For example, wages and salaries should be $21,200 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 $52.00 per repair-hour. $ 2,770 $5,790 $4,640 $3,800 Required: Compute the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...

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