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

Fixed Cost

per MonthCost per Repair-HourWages and salaries$20,700$15.00Parts and supplies$7.10Equipment depreciation$2,780$0.55Truck operating expenses$5,740$1.70Rent$4,670Administrative expenses$3,830$0.40

For example, wages and salaries should be $20,700 plus $15.00 per repair hour. The company expected to work 2,700 repair-hours in May, but actually worked 2,600 repair-hours. The company expects its sales to be $48.00 per repair-hour.

Jake's Roof RepairActivity VariancesFor the Month Ended May 31Flexible BudgetPlanning BudgetActivity VariancesRepair-hoursRevenueExpenses: Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expensesTotal expenseNet operating income