Need help solving Harolds Roof Repair has provided the following data concerning
ID: 2503681 • Letter: N
Question
Need help solving
Harolds Roof Repair has provided the following data concerning its costs:
For example, wages and salaries should be $20,700 plus $15.00 per repair-hour. The company expected to work 2,600 repair-hours in June, but actually worked 2,500 repair-hours. The company expects its sales to be $45.00 per repair-hour.
Compute the companys activity variances for June. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)
Fixed Costper Month Cost per Repair-Hour
Explanation / Answer
Explanation: Harold's Roof RepairActivity Variances
For the Month Ended June 30
Planning
Budget Flexible
Budget Activity Variances Repair-hours (q)
2,600
2,500
Revenue ($46.00q) $ 119,600 $ 115,000 $ 4,600 U
Expenses:
Wages and salaries ($21,400 + $15.00q)
60,400
58,900
1,500 F Parts and supplies ($7.00q)
18,200
17,500
700 F Equipment depreciation ($2,740 + $.30q)
3,520
3,490
30 F Truck operating expenses ($5,780 + $1.50q)
9,680
9,530
150 F Rent ($4,680)
4,680
4,680
0 None Administrative expenses ($3,820 + $.40q)
4,860
4,820
40 F
Total expense
101,340
98,920
2,420 F
Net operating income $ 18,260 $ 16,080 $ 2,180 U
Harold's Roof Repair
Activity Variances
For the Month Ended June 30
Planning
Budget Flexible
Budget Activity Variances Repair-hours (q)
2,600
2,500
Revenue ($46.00q) $ 119,600 $ 115,000 $ 4,600 U
Expenses:
Wages and salaries ($21,400 + $15.00q)
60,400
58,900
1,500 F Parts and supplies ($7.00q)
18,200
17,500
700 F Equipment depreciation ($2,740 + $.30q)
3,520
3,490
30 F Truck operating expenses ($5,780 + $1.50q)
9,680
9,530
150 F Rent ($4,680)
4,680
4,680
0 None Administrative expenses ($3,820 + $.40q)
4,860
4,820
40 F
Total expense
101,340
98,920
2,420 F
Net operating income $ 18,260 $ 16,080 $ 2,180 U