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Flexible Budgets and Activity Variances

Harold's roof repair has provided the following data concerning it 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 ....$4,650 $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 company expects its sales to be $43.50 per repair-hour.
Required:
Prepare a report showing the company's activity variances for June.

Solution Summary

Flexible budgets and activity variances are examined.

$2.19