Reference no: EM133008677
Question - Jake's Roof Repair has provided the following data concerning its costs:
Fixed Cost per Month Cost per Repair-Hour
Wages and salaries $21,400 $15.00
Parts and supplies $7.40
Equipment depreciation $2,750 $0.45
Truck operating expenses $5,780 $1.80
Rent $4,700
Administrative expenses $3,880 $0.50
For example, wages and salaries should be $21,400 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 $45.00 per repair-hour.
Required - Compute the company's activity variances for May.
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