ch. 9 #1,3
Ray Company provided the following excerpts from its Production Department's flexible budget performance report. Required: Complete the Production Department's Flexible Budget Performance Report Note: 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. Round "rate per hour" answers to 2 decimal places. Ray Company Production Department Flexible Budget Performance Report For the Month Ended August 31 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{13}{|c|}{ For the Month Ended August 31} \\ \hline & & & & & & & \begin{tabular}{l} Actual \\ Results \end{tabular} & \multicolumn{2}{|c|}{ Spending Variances } & \multirow[t]{2}{*}{\begin{tabular}{l} Flexible \\ Budget \end{tabular}} & Activity Variances & \multirow{2}{*}{\begin{tabular}{l} Planning \\ Budget \\ 9,090 \end{tabular}} \\ \hline \multicolumn{7}{|l|}{ Labor-hours (q) } & 9,570 & & & & & \\ \hline Direct labor & & & (q) & & & & 179,145 & & & 177,045 & & \\ \hline Indirect labor & & & + & s & 1.50 & (a) & & 1,870 & F & 21,805 & & \\ \hline Utilties & $ & 7,400 & + & & & (a) & & 1,540 & U & & 768U & 21,944 \\ \hline Supplies: & & & + & & & (a) & 5,060 & & {[} & 4,534 & 7 & 4,390 \\ \hline Equipment depreciation & 5 & 80,650 & & & & & & & None & & 0 None & \\ \hline Factory administration & $ & 18,880 & + & \$ & 1.80 & (a) & & & & & & \\ \hline Total expenses & & & & & & & 343,904 & & & & & \\ \hline \end{tabular} Frank Weston, supervisoc of the Freemont Corporotion's Machining Department, was upset after being reprimanded for his department's poor performance over the prior month. The department's cost control report is given below "Ijust can't understand all of these unfovorable variances," Weston complained to the supervisor of another department. "When the boss called me in, I thought he was going to give me a pot on the back because I know my department worked more efficiently last month than ever before. Instead, he tore me apart. I thought for a minute it might be over the supplies that were stolen out of our warehouse last month. But they only amounted to a couple of hundred dollars, and just look at this report. Everything is unfavorable Direct labor wages and supplies are variable costs; supervision and depreciation are fixed costs; and maintenance and utilities are Direct labor wages and supplies are variable costs; supervision and depreciation are fixed costs; and maintenance and utilities are mixed costs The fixed component of the budgeted maintenance cost is $16,100; the foxed component of the budgeted utilies cost is $13,800 Required: 2. Complete the performance report that will help Mr. Weston's superiors assess how well costs were controlled in the machining department. Note: Do not round your intermediate calculations. Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance). Input all amounts as positive values. Note: Do not round your intermediate calculations. 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. Note: Do not round your intermediate calculations. 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
