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

	Fixed Cost per Month	Cost per Repair-Hour
Wages and salaries	$ 20,800	$ 15.00
Parts and supplies		$ 7.00
Equipment depreciation	$ 2,740	$ 0.50
Truck operating expenses	$ 5,770	$ 1.50
Rent	$ 4,650
Administrative expenses	$ 3,870	$ 0.60

For example, wages and salaries should be $20,800 plus $15.00 per repair-hour. The company expected to work 2,800 repair-hours in May, but actually worked 2,700 repair-hours. The company expects its sales to be $45.00 per repair-hour.

Required:

Compute the company’s activity variances for May.

Transcribed Image Text:

Revenue Expenses: Jake's Roof Repair Activity Variances For the Month Ended May 31 Wages and salaries Parts and supplies Equipment Truck operating expenses Rent depreciation Administrative expenses Total expense Net operating income Revenue Expenses: Jake's Roof Repair Activity Variances For the Month Ended May 31 Wages and salaries Parts and supplies Equipment Truck operating expenses Rent depreciation Administrative expenses Total expense Net operating income

Answer rating: 100% (QA)

To compute the activity variances for Jakes Roof Repair for the month of May we need to calculate th... View the full answer