Jake’s Roof Repair has provided the following data concerning
its costs:

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Question: Jake’s Roof Repair has provided the following data concerning its costs: Fixed Cost per…
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Fixed Cost
per Month
Cost per Repair-Hour
  Wages and
salaries  
$ 20,600      $ 15.00    
  Parts and
supplies  
    $ 7.80    
  Equipment
depreciation  
$ 2,780      $ 0.30    
  Truck operating
expenses  
$ 5,800
    
$ 1.70    
  Rent   $ 4,660
    
     
  Administrative
expenses  
$ 3,820
    
$ 0.50    

   

For example, wages and salaries should be $20,600 plus $15.00
per repair-hour. The company expected to work 2,500 repair-hours in
May, but actually worked 2,400 repair-hours. The company expects
its sales to be $54.00 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.)


Jake’s Roof Repair

Activity Variances

For the Month Ended May 31

Flexible Budget

Planning Budget

Activity Variances
Repair-hours
Revenue
Expenses:
Wages and salaries
Parts and supplies
Equipment depreciation
Truck operating expenses
Rent
Administrative expenses
Total expense
Net operating income

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