Question
Caliban's Cleaning provides specialized cleaning services for clothes, apholstry, and other household miscellany. The company created a Static Planning Budget based on the expenses below,
Caliban's Cleaning provides specialized cleaning services for clothes, apholstry, and other household miscellany. The company created a Static Planning Budget based on the expenses below, 2,000 budgeted direct labor hours during the month, and revenue of $315 per direct labor hour for cleaning services.
Expenses | Fixed Costs | Variable Costs per Hour |
Wages and Salaries | $7,663 | $109.56 per hour |
Supplies | $372 | $3.35 per hour |
Equipment Lease | $1,942 | $25.68 per hour |
Insurance | $3,290 | $4.88 per hour |
Miscellaneous | $704 | $2.97 per hour |
If the company used 2,079 hours, what would be the Wages and Salaries activity variance for the month?
Round your answer to the nearest whole dollar and format your answer to include whether the variance is Favorable or Unfavorable. If the variance is Favorable, your answer should be formatted as 1,234 F. If the variance is Unfavorable, your answer should be formatted as 1,234 U.
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