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Question - Jake's Roof Repair has provided the following data concerning its costs:
Fixed Cost per Month Cost per Repair-Hour Wages and salaries $20,900 $15.00
Parts and supplies $7.20
Equipment depreciation $2,710 $0.60
Truck operating expenses $5,710 $1.60
Rent $4,630
Administrative expenses $3,860 $0.40
For example, wages and salaries should be $20,900 plus $15.00 per repair hour. The company expected to work 2,600 repair-hours in May, but actually worked 2,500 repair-hours. The company expects its sales to be $47.00 per repair-hour.
Required - Compute the company's activity variances for May.
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