Question

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 Flexible Activity Variances Planning Budget Spending Variances Results Labor-hours (q) 9,550 9,070 Direct labor Indirect labor Utilities Supplies Equipment depreciation80,150 Factory administration Total expense q) S 169,205 S 167,125 S 1,474 F S 22,770 q) q) q) S5,038 1.60 S 7,200- S 1,520 U S 672 U 19,898 S 4,514 4,370 0 None 0 None q) 18,840 1.60 S 330,689

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)						9,550			9,550			9,070
Direct labor	(	$18	q)			$169,205.00	$2,080.00	U	$167,125.00	$8,400.00	U	$158,725.00
Indirect labor	(	$7,490.00	+	$1.60	q)	$21,296.00	$1,474.00	F	$22,770.00	$768.00	U	$22,002.00
Utilities	(	$7,200	+	$1.40	q)	$22,090.00	$1,520.00	U	$20,570.00	$672.00	U	$19,898.00
Supplies	(	$1,649.00	+	$0.30	q)	$5,038.00	$524.00	U	$4,514.00	$144.00	U	$4,370.00
Equipment depreciation	(	$80,150	)			$80,150.00	$0.00	None	$80,150.00	$0.00	None	$80,150.00
Factory administration	(	$18,840	+	$1.60	q)	$32,910.00	$1,210.00	F	$34,120.00	$768.00	U	$33,352.00
Total expense						$330,689.00	$1,440.00	U	$329,249.00	$10,752.00	U	$318,497.00

Excel 8 Microsoft Excel Home Insert Page Layout Formulas Data Review View Define Name ▼ use in Formula , t盼Create trom Selection Trace Precedents Trace Dependents Remove Arrows ▼ Q Evaluate Formula Calculate Now Error Checking , Insert AutoSum Recently Financial Logical Text Date &Lookup & Math More Watch Calculation Window Calculate Sheet Used Time Reference&Trig Functions Manager Options Function Library Defined Names Formula Auditing F17 exible Budget Performance Re For the Month Ended 31 Activity Planning Budget spending Flexible Budget Variances Actual Results Labor-hours 9070 Direct labor Indirect labor Utilities 169205 -K9-19 =K10+1 10 167125 1474 1520 22770 (N10-D10)/N6 672 19898 4514 144 4370 -K12412 None D12 None -D12 12 ation(80150 18840 Factory administration D13+(K6 F13) SUM(K8:K13) K14-N14 K13-N13 U 13 H 14-H8-H9-H10-H11-H12 330689 K 13-H13 |F H14-K14U SUM(N8:N13 Total expense 15 16 17 21 23 Sheet94Sheet450 Sheet817 Sheet1 Sheet521Sheet423 Sheet294 (2) Shel Ready Circular References 100% (- 8:57 AM