Jake's Roof Repair has provided the following data concerning its costs: ....................................Fixed Cost per Month......... Cost per
Question:
....................................Fixed Cost per Month......... Cost per Repair-Hour
Wages and salaries ........................................ $23,200.............................. $16.30
Parts and supplies .................................................................................................. $8.60
Equipment depreciation ................................... $1,600................................ $0.40
Truck operating expenses................................. $6,400................................ $1.70
Rent .................................................................. $3,480
Administrative expenses .................................. $4,500.................................$0.80
For example, wages and salaries should be $23,200 plus $16.30 per repair-hour. The company expected to work 2,800 repair-hours in May, but actually worked 2,900 repair-hours. The company expects its sales to be $44.50 per repair-hour.
Required:
Prepare a report showing the company's activity variances for May.
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Related Book For
Managerial Accounting for Managers
ISBN: 978-0073527130
2nd edition
Authors: Eric Noreen, Peter Brewer, Ray Garrison
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