Jakes Roof Repair has provided the following data concerning its costs:

	Fixed Cost per Month			Cost per Repair-Hour
Wages and salaries	$	20,600		$	15.00
Parts and supplies				$	7.30
Equipment depreciation	$	2,710		$	0.50
Truck operating expenses	$	5,720		$	1.70
Rent	$	4,610
Administrative expenses	$	3,820		$	0.60

For example, wages and salaries should be $20,600 plus $15.00 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 $44.00 per repair-hour.

Required:

Compute the companys activity variances for May. (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.)

2.

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reportsthe number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 60 students enrolled in those two courses. Data concerning the companys cost formulas appear below:

	Fixed Cost per Month		Cost per Course		Cost per Student
Instructor wages			$	2,940
Classroom supplies					$	270
Utilities	$	1,220	$	60
Campus rent	$	5,000
Insurance	$	2,300
Administrative expenses	$	3,800	$	42	$	7

For example, administrative expenses should be $3,800 per month plus $42 per course plus $7 per student. The companys sales should average $900 per student.

The company planned to run four courses with a total of 60 students; however, it actually ran four courses with a total of only 50 students. The actual operating results for September appear below:

	Actual
Revenue	$	51,100
Instructor wages	$	11,040
Classroom supplies	$	16,050
Utilities	$	1,870
Campus rent	$	5,000
Insurance	$	2,440
Administrative expenses	$	3,814

Required:

Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September. (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.)

Jake's Roof Repair Activity Variances For the Month Ended May 31 Revenue Expenses: Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Total expense Net operating income