Jake’s roof repair has provided the following data concerning its costs:
- fixed cost per month cost per repair-hour
wages and salaries $ 23,200 $ 16.30
parts and supplies $ 8.60
equipment depreciation $ 1,600 $ 0.40
truck operating expenses $ 6,400 $ 1.70
rent $ 3,480
administrative expenses $ 4,500 $ 0.80
for example, wages and salaries should be $23,200 plus $16.30 per repair-hour. the company expected to work 2,800 repair-hours in may, but actually worked 2,900 repair-hours. the company expects its sales to be $44.50 per repair-hour.
required:
compute the company’s activity variances for may.