Question

apter 9 required Ray Company provided the following excerpts from its Production Department's flexible budget performance report Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (... ero variance). Input all amounts as positive values. Round "rate per hour answers to 2 decimal places.) Ray Company Production Department Flexible Budget Performance Report For the Month Ended August 31 Actual Flexible Spending Variances Results Budget 9,480 Planning Activity Variances 9,000 Labor-hours (9) 134,730 $ Direct labor $ $ 132,720p 21,640 Indirect labor $ $ 1,780 F 1,450 U $ 336 U Id $ 6,500 $ $ Uttes + 12,800 4,300 9) $ 4.940 $ 4.444 Supplies $ 0 None O None Equipment depreciation 78.400 Factory administration Total expense $ 288,088 < Prev 4 of 5 Next > Raester 201904 docx

Answer 1

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)						9,480			9,480			9,000
Direct labor	(	$14	q)			$134,730.00	$2,010.00	U	$132,720.00	$6,720.00	U	$126,000.00
Indirect labor	(	$7,420.00	+	$1.50	q)	$19,860.00	$1,780.00	F	$21,640.00	$720.00	U	$20,920.00
Utilities	(	$6,500	+	$0.70	q)	$14,586.00	$1,450.00	U	$13,136.00	$336.00	U	$12,800.00
Supplies	(	$1,600.00	+	$0.30	q)	$4,940.00	$496.00	U	$4,444.00	$144.00	U	$4,300.00
Equipment depreciation	(	$78,400	)			$78,400.00	$0.00	None	$78,400.00	$0.00	None	$78,400.00
Factory administration	(	$18,700	+	$1.90	q)	$35,572.00	$1,140.00	F	$36,712.00	$912.00	U	$35,800.00
Total expense						$288,088.00	$1,036.00	U	$287,052.00	$8,832.00	U	$278,220.00

Excel 8 - Microsoft Excel X 90 = File Home Insert Page Layout Formulas Data Review View - 2 x Calculate Now Insert Function Math More & Trig Functions A a Define Name f Use in Formula Name Manager Create from Selection Defined Names Trace Precedents 5 Show Formulas Trace Dependents Error Checking Watch Remove Arrows" Evaluate Formula Window Formula Auditing Calculation Calculate Sheet Options Calculation AutoSum Recently Financial Logical Text Date & Lookup & - Used - Time Reference Function Library H16 fx B C D E А F G H I M N O Ray Company Production Department Flexible Budget Performance Report For the Month Ended August 31 Spending Actual Results Variances 9480 Particulars Flexible Budget Activity Variances Planning Budget 9000 Labor-hours (9) =H6 =H8-K8 1780 1450 U F Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory administration Total expense (I=K8/K6 134730 (=K9-(K6*F9) 9) =K9-19 (6500 =(N10-D10)/N6 19) = 10+110 (=K11-(K6*F11) +=(K11-N11)/(K6-N6) C) 4940 (78400 =K12+12 (18700 =H14-H8-H9-H10-H11-H12 288088 EH11-K11 U 132720 21640 =N10+L10 4444 =D12 =D13+K6*F13) =SUM(K8:K13) =K8-N8 U =K9-N9 Ju 336 144 u None =K13-N13 u = 14-N14 U =N6*D8 =D9+(N6*F9) 12800 4300 =D12 =D13+N6*F13) =SUM(N8:N13) None =K13-H13 =H14-K14 U K 24 M Ready Sheet94 Sheet450 (2) Sheet817 (2) Sheet521 Sheet423 (13) Sheet294 (2) Sho Sheet92 Sheet350 (3) Circular References BO! 100% - Inbox.. con W... RE... RE: I. e Cont.. Iche. 2) Excel.. 7.) Excel8 W A... ima... ima... - 12.9.2010