Jake's Roof Repair has provided the following data concerning its costs:Fixed CostCost perper MonthRepair-HourWages and salaries$21,400$15.00Parts and supplies$7.30Equipment depreciation$2,730 $0.60Truck operating expenses$5,800 $1.90Rent$4,690Administrative expenses$3,890 $0.60For example, wages and salaries should be $21,400 plus $15.00 per repair-hour. Thecompany expected to work 3,000 repair-hours in May, but actually worked 2,900repair-hours. The company expects its sales to be $45.00 per repair-hour.Required:Compute the company's activity variances for May. (Indicate the effect of eachvariance by selecting "F" for favorable, "U" for unfavorable, and "None" for noeffect (i.e., zero variance). Input all amounts as positive values.)RevenueExpenses:Jake's Roof RepairActivity VariancesFor the Month Ended May 31Wages and salariesParts and suppliesEquipment depreciationTruck operating expensesRentAdministrative expensesTotal expenseNet operating income

Step 1: Determine the expected and actual repair hours Expected - 3,000 repair-hoursActual - 2,900…

Answered: Jake's Roof Repair has provided the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost Cost per per Month $ 21,200 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Repair-Hour $15.00 $ 7.50 $ 0.50 $ 1.60 $ 2,770 $ 5,710 $ 4,680 $ 3,870 Rent Administrative expenses $ 0.40 For example, wages and salaries should be $21,200 plus $15.00 per repair-hour. The company expected to work 2,800 repair-hours in May, but actually worked 2,700 repair-hours. The company expects its sales to be $44.00 per repair-hour. Required: Compute the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
None
Shalom Company has provided the following data concerning its costs: Fixed cost per month Cost per hour 1 Administrative expenses 22,300 1.00 M 2 Depreciation 5,000 2.00 M 3 Supplies 6.00 V 4Rent 15,000 F 5 Utilities 4,700 3.50 M 6 Wages and salaries 24,100 35.00 M The company planned to work for 300 hours in February for P350 per hour. However, it worked 360 hours during that month, an activity…
HASF Glassworks makes glass flanges for scientific use Material cost $ 1 per flange and the glass blowers are paid a wage rate of 20 per hours a glass blower blows 10 flanges per hours. Fixed manufacturing costs for flanges are 20,000 per period. other nonmanufacturing cost associated with flanges are 10,000 per period and are fixed. 1-Find out total fixed cost2-Find out Variable cost per unit
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Wages and salaries Jake's Roof Repair provided the following data concerning its costs: Cost per Repair-Hour $ 15.00 Fixed Cost per Month $ 21,100 Parts and supplies $ 7.40 Equipment depreciation $ 2,750 $ 0.55 Truck operating expenses $ 5,730 $ 1.70. Rent $ 4,690 Administrative expenses $ 3,850 $ 0.70 For example, wages and salaries should be $21,100 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. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Required: Compute the company's activity variances for May. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all…
The receiving department of a firm performs 12,000 hours of uploading work and costs $60,000 per year. What is the activity rate for the receiving department? a.$4.50 per hour b.$14 per hour c.$4 per hour d.$5 per hour e.Cannot be determined from this information.
Wyckam Manufacturing Incorporated has provided the following estimates concerning its manufacturing costs: Cost per Machine- Hour $ 4.25 Direct materials Direct labor Supplies Utilities Depreciation Insurance Fixed Cost per Month $ 36,800 $ 1,400 $ 16,700 $ 12,700 For example, utilities should be $1,400 per month plus $0.05 per machine-hour. The company expects to work 5,000 machine-hours in June. Note that the company's direct labor is a fixed cost. Required: Prepare the company's planning budget for June. Wyckam Manufacturing Incorporated Planning Budget for Manufacturing Costs For the Month Ended June 30 Budgeted machine-hours Direct materials Direct labor Supplies Utilities Depreciation Insurance Total manufacturing cost $ 0.30 $ 0.05 $ $ 36,000 16,000 1,500 1,650 16,700 1,200 73,050
Trucks have the following predicted costs for the next year Rent $120,000 Insurance $5,000 Power $12,000 Direct Labor $80,000 Maintenance $15,000 Direct Materials $75,000 Labour hours for the year 10,000 Units of materials 50,000 What is the overhead recovery rate per labor hour? Cost up the full cost of the following job including overheads Labor 20 hours Materials 35 units Please show all your calculationsr P
The following table provides data concerning a company’s costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.40 Electricity $ 1,400 $ 0.08 Maintenance $ 0.15 Wages and salaries $ 4,900 $ 0.30 Depreciation $ 8,400 Rent $ 1,800 Administrative expenses $ 1,400 $ 0.04 For example, electricity costs are $1,400 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.10 per car washed. Prepare the company’s planning budget for August. Budgeted Cars Washed Revenue Expenses: Cleaning Supplies Electricity Maintenance Wages and Salaries Depreciation Rent Administrative Expenses Total Expenses Net Operating Income $
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San Clemente Inc. incurs the following costs to produce 10,000 units of a subcomponent: Direct materials $8,400 Direct labor 11,250 Variable overhead 12,600 Fixed overhead 16,200 An outside supplier has offered to sell San Clemente the subcomponent for $2.85 a unit. If San Clemente accepts the offer, by how much will net income increase (decrease)? ($8,850) decrease ($2,850) decrease O $19,950 increase $3,750 increase

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