Item$2$

$2\mathrm{.}5$

points

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Exercise $9-7($Algo$)$ Flexible Budgets and Activity Variances $[$LO$9-1,$ LO$9-2]$

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

Fixed Cost per Month Cost per Repair$-$Hour

Wages and salaries $ $20,900$ $ $15\mathrm{.}00$

Parts and supplies $ $7\mathrm{.}50$

Equipment depreciation $ $2,760$ $ $0\mathrm{.}60$

Truck operating expenses $ $5,750$ $ $1\mathrm{.}60$

Rent $ $4,630$

Administrative expenses $ $3,890$ $ $0\mathrm{.}40$

For example, wages and salaries should be $$20,900$ plus $$15\mathrm{.}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 $$49\mathrm{.}00$ per repair$-$hour.

Required:

Compute the company$$s 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.