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.) Required: Complete the Production Department's Flexible Budget Performance Report Ray Company Production Department Flexible Budget Performance Report For the Month Ended August 31 Actual Flexible Spending Variances Results Budget 9,560 Ativitu varia Activity Variances Planning Budget 9,080 Labor-hours (9) $ 174,170 $ a) + + 172,080 23,752 $ Direct labor Indirect labor Utilities Supplies 1.70 g) d $ 7,300 720 U 1,108 F 1,530 U L 0 None 20,920 4,380 a) 5,052 4,524 $ Equipment depreciation ( 80,400 0 None Factory administration $ + 18,860 1.70 ) Total expense $ 339,328

Answer 1

Production Department Flexible Budget Performance report

For the month ended August 31

				Actual results	Spending variance	Flexible budget	Activity variance	Planning budget
Labor hour (q)				9560		9560		9080
Direct labor	18q			174170	2090 U	172080	8640 U	163440
Indirect labor	7500	+	1.70q	22644	1108 F	23752	816 U	22936
Utilities	7300	+	1.5q	23170	1530 U	21640	720 U	20920
Supplies	1656	+	0.30q	5052	528 U	4524	144 U	4380
equipment depreciation	80400			80400	0 None	80400	0 None	80400
Factory administration	18860	+	1.70q	33892	1220 F	35112	816 U	34296
Total expense				339328	1820 U	337508	11136 U	326372