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 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 9,490 Activity Variances Planning Budget 9,010 Labor-hours (9) Direct labor q) $ 140,625 $ 137,605 16,920 Indirect labor + 3,670 F Utilities ( $ 6,600 + $ 1.009) 9) q) 1,460 U 384 U 13,808 Supplies + 4,954 4,454 4,310 Equipment depreciation 0 None ) 78,650 0 None Factory administration + $ 1.009) 18,720 Total expense $ 280,191

Answer 1

							Actual			Flexible			Planning
							Results	Spending Variances		Budget	Activity Variances		Budget
Labor-hours							9490			9490			9010
Direct labor			$        14.50	q			$ 1,40,625.00	$ 3,020.00	U	$ 1,37,605.00	$ 6,960.00	U	$ 1,30,645.00
Indirect labor			$   7,430.00	+	$      1.00	q	$    13,250.00	$ 3,670.00	F	$    16,920.00	$    480.00	U	$    16,440.00
Utilities			$   6,600.00	+	$      0.80	q	$    15,652.00	$ 1,460.00	U	$    14,192.00	$    384.00	U	$    13,808.00
Supplies			$   1,607.00	+	$      0.30	q	$      4,954.00	$    500.00	U	$      4,454.00	$    144.00	U	$      4,310.00
Equipment depreciation			$ 78,650.00				$    78,650.00	$             -	None	$    78,650.00	$             -	None	$    78,650.00
Factory administration			$ 18,720.00	+	$      1.00		$    27,060.00	$ 1,150.00	F	$    28,210.00	$    480.00	U	$    27,730.00
Total expense							$ 2,80,191.00	$    160.00	U	$ 2,80,031.00	$ 8,448.00	U	$ 2,71,583.00

Is it correct?