Problem: 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.