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Category > Accounting Posted 14 Aug 2017 My Price 9.00

Harold’s Roof Repair

EXERCISE 9–8 Flexible Budgets and Activity Variances [LO1, LO2]

Harold’s Roof Repair has provided the following data concerning its costs:

 

 

Fixed Cost per Month

Cost per Repair-Hour

Wages and salaries . . . . . . . . . . .

$21,380

$15.80

Parts and supplies . . . . . . . . . . . .

 

$7.50

Equipment depreciation . . . . . . . .

$2,740

$0.60

Truck operating expenses. . . . . . .

$5,820

$1.90

Rent . . . . . . . . . . . . . . . . . . . . . . .

$4,650

 

Administrative expenses. . . . . . . .

$3,870

$0.70

 

For example, wages and salaries should be $21,380 plus $15.80 per repair-hour. The company expected to work 2,500 repair-hours in June, but actually worked 2,400 repair-hours. The com- pany expects its sales to be $43.50 per repair-hour.

Required:

Prepare a report showing the company’s activity variances for June.

Answers

Maurice Tutor
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Status NEW Posted 14 Aug 2017 09:08 PM My Price 9.00

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