Jakes Roof Repair provided the following data concerning its costs: Fixed Cost per Month Cost per Repair-Hour
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Question:
Jakes Roof Repair provided the following data concerning its costs:
Fixed Cost per Month | Cost per Repair-Hour | |
---|---|---|
Wages and salaries | $ 20,900 | $ 15.00 |
Parts and supplies | $ 7.50 | |
Equipment depreciation | $ 2,770 | $ 0.55 |
Truck operating expenses | $ 5,790 | $ 1.80 |
Rent | $ 4,630 | |
Administrative expenses | $ 3,850 | $ 0.70 |
For example, wages and salaries should be $20,900 plus $15.00 per repair-hour. The company expected to work 2,900 repair-hours in May but actually worked 2,800 repair-hours. The company expects its sales to be $48.00 per repair-hour.
Required:
Compute the companys activity variances for May.
Note: 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.
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