1 Wilson Brothers is an appliance repair company and uses se

1 Wilson Brothers is an appliance repair company and uses service calls as its measure of activity. The company\'s controller uses the data below in costs each month: Fixed Cost per Month Variable Cost per Service Call Salaries, Wages&Benefits; 32.300 22.50 1.200 9.700 Parts&Supplies; Vehicle Expenses Administratvie Expenses 12.50 3.40 0.10 S 48,200 38.50 Although the company budgeted to make 210 service calls in the month of November, they actually only made 180 calls due to snowy weather. Actual costs for November are shown below Salaries, Wages & Benefits S Parts & Supplies Vehicle Expenses Administratvie Expenses 40.445 S 30.105 S 16,800 5.015 for Salaries. Wages &Benefits; would be closest to: Based on this data, the November A S 4,095 Unfavorable 4,095 Favorable 675 Favorable a. D S 675 Unfavorable E S 3,420 Unfaverable ann 8210 4o44 36350 3702S ? 82 ? PrtScn End 8

Solution

Activity variance:

= Budgeted cost – Actual cost

= ($32,300+210×$22.50)-$40,445

=$37,025-$40,445

= $3,420 Unfavorable