I think I almost got the answers, the that red section is really making me confusing.

Could you please explain the process of getting the correct answer.

Thanks much.

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 "Ffor 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 FlexibleActivity VariancesBudget Budget Planning Actual Results S Spending Variances Labor-hours (q) 9,560 9,560 9,080 18.00 a) 7,5001.70 $ 7,300 $ 174,170 2,090 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory administration( Total expense $ 172,080 $ 8,640 $ 23,752 $ $ 21,640$ $4,524 $ $ 163,440 22,936 20,920 4,380 80,400 $ 34,296 $ 326,372 17022,644S ,108 F 50) 23,170$ 1,530 U 720 U 5,052$ 528 144 0 NoneS 80,400S $ 35,112 S $ 337,508 $ 80,400$ 0 None 80,400 18,860 17033,892S 1,220 F S 339,328