ACCT 505 Solutions to Weekly Problems - Week 5

Exercise 9-8 (20 minutes)

Harold's Roof Repair

Activity Variances

For the Month Ended June 30

Planning Budget

Flexible Budget

Activity Variances

Repair-hours (q)

2,500

2,400

Revenue ()

108,750

104,400

4,350

U

Expenses:

Wages and salaries

(21,380 )

60,880

59,300

1,580

F

Parts and supplies ()

18,750

18,000

750

F

Equipment depreciation

(2,740 )

4,240

4,180

60

F

Truck operating expenses

(5,820 )

10,570

10,380

190

F

Rent (4,650)

4,650

4,650

0

Administrative expenses

(3,870 )

5,620

5,550

70

F

Total expense

104,710

102,060

2,650

F

Net operating income

4,040

2,340

1,700

U

Problem 9-21 (30 minutes)

1.

Verona Pizza

Flexible Budget Performance...