Ray Company provided the following excerpts from its Production Department\'s fl

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 Actual ResultsSpending Variances Budget Activity Variances Planning Budget Labor-hours (q) 9,490 9,490 9,010 14.00 q) $ 140,625 $ 137,605 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory administration Total expense $ 3,670 F $ 16,920 1.00 6,600+ 13,808 4,310 $ 1,460 U 384 U q) q) 4,954 $ 4,454 $ 144 ( 0 None 0 None 18,720 1.00 q) $ 280,191

Explanation / Answer

Particulars Cost formula Actual Revenue and spending variance Flexible budget Activity variance Static budget Labor hours 9490 9490 9010 Direct labor 14.5q 140625 3020 U 137605 6960 U 130645 Indirect labor 7430+1q 13250 3670 F 16920 480 U 16440 utilities 6600+.8q 15652 1460 U 14192 384 U 13808 Supplies 1607+.3q 4954 500 U 4454 144 U 4310 equipment depreciation 78650 78650 0 78650 0 U 78650 Factory administration 18720+1q 27060 100 U 28210 480 U 27730 Total expense 280191 160 U 280031 8448 U 271583

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