Flexible Budgets and Activity Variances
SuperClassHarold’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.
10 years ago
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flexible_budgets_and_activity_variances.docx
