Question

Ray Company provided the following excerpts from its Production Department’s flexible budget performance report. (Round "rate...

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 "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) 9,600 9,120 Direct labor ( q) \$195,130 \$192,000 Indirect labor ( + \$1.20 q) \$3,028 F \$19,060 Utilities ( \$7,700 + q) \$1,570 U \$912 U \$25,028 Supplies ( + q) \$5,108 \$4,564 \$144 \$4,420 Equipment depreciation ( \$81,400 ) \$0 None \$0 None Factory administration ( \$18,940 + \$1.10 q) Total expense \$353,420

Solution:

 Ray Company Production Department Flexible Budget Performance Report For the Month Ended August 31 Particulars Actual Results Spending Variances Flexible Budget Activity Variances Planning Budget Labor-hours (q) 9,600 9600 9,120 Direct labor ( \$20 q) \$195,130.00 \$3,130.00 U \$192,000.00 \$9,600.00 U \$182,400.00 Indirect labor ( \$7,540.00 + \$1.20 q) \$16,032.00 \$3,028.00 F \$19,060.00 \$576.00 U \$18,484.00 Utilities ( \$7,700 + \$1.90 q) \$27,510.00 \$1,570.00 U \$25,940.00 \$912.00 U \$25,028.00 Supplies ( \$1,684.00 + \$0.30 q) \$5,108.00 \$544.00 U \$4,564.00 \$144.00 U \$4,420.00 Equipment depreciation ( \$81,400 ) \$81,400.00 \$0.00 None \$81,400.00 \$0.00 None \$81,400.00 Factory administration ( \$18,940 + \$1.10 q) \$28,240.00 \$1,260.00 F \$29,500.00 \$528.00 U \$28,972.00 Total expense \$353,420.00 \$956.00 U \$352,464.00 \$11,760.00 U \$340,704.00

Earn Coins

Coins can be redeemed for fabulous gifts.