Jakes Roof Repair has provided the following data concerning

Jake\'s Roof Repair has provided the following data concerning its costs: Fixed Cost Cost per per Month Repair-Hour Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses $15.00 $ 7.50 $ 0.40 $ 1.70 $ 21,000 $ 2,750 $ 5,780 $ 4,630 $ 3,810 $ 0.60 For example, wages and salaries should be $21,000 plus $15.00 per repair-hour. The company expected to work 2,900 repair-hours in May, but actually worked 2,800 repair-hours. The company expects its sales to be $47.00 per repair-hour. Required: Compute the company\'s 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.) Jake\'s Roof Repair Activity Variances For the Month Ended May 31 $ 4,700 U Revenue Expenses 1,500 F 750F 40 F Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses 0 None 170 xF 2,520 F $ 2,180u Total expense Net operating income

Solution

Activity variance :

Revenue	4700	U
Expenses
Wages and salaries	1500	F
Parts and supplies	750	F
Equipment depreciation	40	F
Truck operating expense	170	F
Rent	0	None
Administrative expense	60	F
Total expense	2520	F
Net operating income	2180	U