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.) Required:Complete the Production Department’s Flexible Budget Performance Report. Ray CompanyProduction Department Flexible Budget Performance ReportFor the Month Ended August 31PlanningBudgetActualFlexibleSpending VariancesActivity VariancesResultsBudgetLabor-hours (q)9,6309,150q)$ 209,205$ 207,045Direct labor$ 1.50 q)q)1,930 F1,600 UIndirect labor+22,015Utilities( $ 8,0001,056 U28,130Supplies5,1504,5944,450Equipment depreciationO NoneO None82,150$Factory administration$ 1.40 q)+19,000Total expense$ 378,568%24

Direct Labor=Amount under flexible budgetLabor hours (Flexible budget)=$207,0459,630=$21.5

Answered: Ray Company provided the following…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 7P: Preparing a performance report Use the flexible budget prepared in P7-6 for the 31,000-unit level...

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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.)

Required:

Complete the Production Department’s Flexible Budget Performance Report.

Ray Company
Production Department Flexible Budget Performance Report
For the Month Ended August 31
Planning
Budget
Actual
Flexible
Spending Variances
Activity Variances
Results
Budget
Labor-hours (q)
9,630
9,150
q)
$ 209,205
$ 207,045
Direct labor
$ 1.50 q)
q)
1,930 F
1,600 U
Indirect labor
+
22,015
Utilities
( $ 8,000
1,056 U
28,130
Supplies
5,150
4,594
4,450
Equipment depreciation
O None
O None
82,150
$
Factory administration
$ 1.40 q)
+
19,000
Total expense
$ 378,568
%24

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