Question

Ray Company provided the following excerpts from its Production Department's flexible budget performance report. (Round "rate per hour" answers to 2 decimal places. 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.) Ray Company Production Department Flexible Budget Performance Report For the Month Ended August 31 Flexible Results Spending Variances Budget 9,580 Activity Variances Planning Budget 9,100 Labor-hours (9) Direct labor $ 185,130 $ $ 182,020 17,100 Indirect labor $ $ 3,760 F 1,550 u Utilities ($ 7,500 $ 816 U $ $ 22,970 4,400 Supplies a) $ 5,080 $ 4,544 Equipment depreciation $ 0 Noneſ 0 None 80,900 Factory administration 18,900 1.90 Total expense $ 345,648

Answer 1

				Actual	Spending variance		Flexible	Activity variance		Planning
				results			budget			budget
labor hours				9,580			9,580			9,100
Direct labor			19	185,130	3,110	U	182,020	9,120	U	172900
Indirect labor		7,520	1	13,340	3,760	F	17,100	480	U	16620
Utilities		7,500	1.7	25,336	1,550	U	23,786	816	U	22,970
Supplies		1,670	0.3	5,080	536	U	4,544	144	U	4,400
Equipment depreciation		80,900		80,900	0	N	80,900	0	N	80,900
Factory administration		18,900	1.9	35,862	1,240	F	37102	912	U	36190
total expense				345,648	196	U	345,452	11,472	U	333980