27 oints Exercise 9-7 (Algo) Flexible Budgets and Activity Variances [LO9-1, LO9-2] Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost Cost per per Month Repair-Hour Book Kages and salaries Hint Print References Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses $ 20,700 $ 15.00 $ 7.60 $ 2,770 $0.40 $ 5,730 $ 1.70 $ 4,630 $0.50 $ 3,890 For example, wages and salaries should be $20,700 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 $47.00 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 (ie., zero variance). Input all amounts as positive values.) Jake's Roof Repair Activity Variances For the Month Ended May 31 Mc Revenue Expenses Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent ces Exercise 9-9 (Algo) Planning Budget [LO9-1] Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Fixed Cost per Cost per Car Washed Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Month $ 0.60 $ 1,200 $ 0.08 $ 0.15 $ 4,400 $0.40 $ 8,200 $1,900 $ 1,700 $ 0.05 For example, electricity costs should be $1,200 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $5.90 per car washed. Required: Prepare the company's planning budget for August. Lavage Rapide Planning Budget For the Month Ended August 31 Revenue Expenses Cleaning supplies Electricity Maintenance 7 Exercise 9-10 (Algo) Flexible Budget [LO9-1] Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Book cleaning supplies Hi Electricity Maintenance P Mages and salaries References Depreciation Rent Administrative expenses Fixed Cost per Month Cost per Car Washed. $ 0.60 $1,500 $ 0.08 $ 0.20 54,800 $ 0.20 $8,100 $2,100 $1,300 $ 0.01 For example, electricity costs should be $1,500 per month plus $0.08 per car washed. The company actually washed 8,100 cars in August and collected an average of $6.30 per car washed. Required: Prepare the company's flexible budget for August. Lavage Rapide Flexible Budget For the Menth Ended August 31 Revenue Expenses Mc Clearing supplies Electricity Maintenan Problem 9-18 (Algo) Activity and Spending Variances [LO9-1, L09-2, L09-3] You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Utilities Maintenance Supplies Indirect labor Depreciation $16,100 $38,900 Cost Formula $0.15 per machine-hour $1.30 per machine-hour $0.80 per machine-hour $94,200 +$2.00 per machine-hour $67,700 Actual Cost in March $ 21,050 $60,000 $ 16,600 $137,100 $ 69,400 During March, the company worked 19,000 machine-hours and produced 13,000 units. The company had originally planned to work 21,000 machine-hours during March. Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the spending variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ie., zero variance). Input all amounts as positive values.)