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: Indiente the effect of each variance by selecting "F" for fovorable, "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. You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president asked you to review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs. You find the company has never used a flexible budget, and you suggest preparing such a budget would be an exceilent first step in overhead planning and control After much effort and analysis, you estimated the following cost formulas and gathered the following actual cost data for March During March, the company worked 15,000 machine-hours and produced 9,000 units. The company originally planned to work 17,000 machine-hours during March Required: 1 Calculate the octivity variances for March. 2 Calculate the spending variances for March. Complete this question by entering your answers in the tabs below. Calculate the activity variances for March. 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. 2 Calculate the spending variances for Morch. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Calculate the activity variances for March. 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. 1. Calculate the activity variances for March 2. Calculate the spending variances for March. (8) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Calculate the spending variances for March. Note: Indicate the effect of each vanance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e.4 zero variance). Input all amounts as positive values Frank Weston, superwsor of the Freemont Corporation'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. 7 just can't understand oll of these unfavorable variances," Weston complained to the supervisor of another department. When the boss called me in, I thought he was going to give me a pat on the back becouse I know my department worked more efficienty 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 unfovorable: Direct labor wages and supplies are variable costs, supervision and depreciotion are fixed costs, and maintenance and utilties are mbed costs. The fixed component of the budgeted maintenance cost is $12,900, the fixed component of the budgeted utitites cost is $13,000 Required: 2. Complete the performance report that will help Mr. Weston's superiols assess how well costs were controlled in the machining depertment. 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 (1.e., zero variance), input all amounts as positive values. 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 variance by selecting "F" for favorable, " U " for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values
