Question
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
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 | $144 | $4,390 | |||||
| Equipment depreciation | ( | $80,650 | ) | $0 | None | $0 | None | |||||
| Factory administration | ( | $18,880 | + | $1.80 | q) | |||||||
| Total expense | $343,984 | |||||||||||
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