Question

Problem 9-19 (Algo) Flexible Budget Performance Reports; Working Backwards [LO 9-1,9-2, 9-3, 9-4] 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 (l.e., zero variance). Input all amounts as positive values.) Ray Company Production Department Flexible Budget Performance Report For the Month Ended August 31 Actual Flexible Spending Variances Budget 9,530 Activity Variances Planning Budget 9,050 Labor hours (9) Direct Labor $ 159 305 $ $ 157 245 20,812 Indirect labor 2,206 F 1,500U $ 576 U S Utilities Supplies 5010 17,860 4,350 $ 4,494 $ Equipment depreciation 0 None $ 79.650 0 None Factory administration Total expense $ 313 459

Answer 1

Solution:

Ray Company
Production Department Flexible Budget Performance Report
For the Month Ended August 31
Particulars						Actual Results	Spending Variances		Flexible Budget	Activity Variances		Planning Budget
Labor-hours (q)						9,530			9,530			9,050
Direct labor	(	$17	q)			$159,305.00	$2,060.00	U	$157,245.00	$7,920.00	U	$149,325.00
Indirect labor	(	$7,470.00	+	$1.40	q)	$18,606.00	$2,206.00	F	$20,812.00	$672.00	U	$20,140.00
Utilities	(	$7,000	+	$1.20	q)	$19,936.00	$1,500.00	U	$18,436.00	$576.00	U	$17,860.00
Supplies	(	$1,635.00	+	$0.30	q)	$5,010.00	$516.00	U	$4,494.00	$144.00	U	$4,350.00
Equipment depreciation	(	$79,650	)			$79,650.00	$0.00	None	$79,650.00	$0.00	None	$79,650.00
Factory administration	(	$18,800	+	$1.40	q)	$30,952.00	$1,190.00	F	$32,142.00	$672.00	U	$31,470.00
Total expense						$313,459.00	$680.00	U	$312,779.00	$9,984.00	U	$302,795.00