Ray Company provided the following excerpts from its Production

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) 9,630 9,630 9,150 Direct labor ( $21.50 q) $209,205 $2,160 U $207,045 U Indirect labor ( + $1.50 q) $1,930 F $22,015 720 Utilities ( $8,000 + q) $1,600 U $1,056 U $28,130 Supplies ( + q) $5,150 $4,594 $144 $4,450 Equipment depreciation ( $82,150 ) $82,150 $0 None $82,150 $0 None $82,150 Factory administration ( $19,000 + $1.40 q) Total expense 378,568

SOLUTION PREVIEW

Ray Company Production Department Planning Budget For the Month Ended August 31
Budgeted labor-hours (q)	9,150
Direct labor ($21.50q)........................................................	$196,725
Indirect labor ($7,570 + $1.50q)........................................	21,295

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