Ray Company provided the following excerpts from its Production Departments 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 Results

Spending Variances

Flexible Budget

Activity Variances

Planning Budget

Labor-hours (q)

9,570

9,090

Direct labor

(

q)

$179,145

$177,045

Indirect labor

(

+

$1.50

q)

$1,870

F

$21,865

Utilities

(

$7,400

+

q)

$1,540

U

$768

U

$21,944

Supplies

(

+

q)

$5,066

$4,534

$4,390

Equipment depreciation

(

$80,650

)

$0

None

$0

None

Factory administration

(

$18,880

+

$1.80

q)

Total expense

$343,984

Question 16: Ray Company provided the following excerpts from its Production Departments 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 Results	Spending Variances		Flexible Budget	Activity Variances		Planning Budget
Labor-hours (q)						9,570						9,090
Direct labor	(		q)			$179,145			$177,045
Indirect labor	(		+	$1.50	q)		$1,870	F	$21,865
Utilities	(	$7,400	+		q)		$1,540	U		$768	U	$21,944
Supplies	(		+		q)	$5,066			$4,534			$4,390
Equipment depreciation	(	$80,650	)				$0	None		$0	None
Factory administration	(	$18,880	+	$1.80	q)
Total expense						$343,984