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 Results Spending Variances Budget 9,500 9,500 Activity Variances Planning Budget 9,020 Labor-hours (9) ( $ 15.009) $ 3.030 $ 145,530 14,586 $ 142,500 17,890 + 3,304 F 1,470U $ 6,700 + $ 1.10 ) a) a) Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory administration 432 U 14,818 4,320 + 4,968 4,464 0 None 0 None $ 78,900 S 18,740 $ 1.10 ) Total expense $ 288,734

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				9500		9500		9020
Direct labor	15			145530	3030 U	142500	7200 U	135300
Indirect labor	7440	+	1.10q	14586	3304 F	17890	528 U	17362
Utilities	6700	+	0.90q	16720	1470 U	15250	432 U	14818
Supplies	1614	+	0.30q	4968	504 U	4464	144 U	4320
Equipment Depreciation	78900			78900	0 None	78900	0 None	78900
Factory administration	18740	+	1.10q	28030	1160 F	29190	528 U	28662
Total expense				288734	540 U	288194	8832 U	279362