Ray Company provided the following excerpts from its Product

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.)

Solution

Flexible budget performance report :

		Actual results	Spending variance	Flexible budget	Activity variance	Static budget
Labour hours		9530		9530		9050
Direct labour	16.5q	159305	2060 U	157245	7920 U	149325
Indirect labour	7470+1.4q	18606	2206 F	20812	672 U	20140
Utilities	7000+1.2q	19936	1500 U	18436	576 U	17860
Supplies	1635+0.3q	5010	516 U	4494	144 U	4350
Equipment depreciation	79650	79650	0 None	79650	0 None	79650
Factory administration	18800+1.4q	30952	1190 F	32142	672 U	31470
Total expense		313459	680 F	312779	9984 U	302795