Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared...

	Cost Formulas
Direct labor	$16.20q
Indirect labor	$4,100 + $1.50q
Utilities	$5,000 + $0.30q
Supplies	$1,200 + $0.40q
Equipment depreciation	$18,600 + $2.40q
Factory rent	$8,000
Property taxes	$2,500
Factory administration	$13,300 + $0.80q

The Production Department planned to work 4,100 labor-hours in March; however, it actually worked 3,900 labor-hours during the month. Its actual costs incurred in March are listed below:

	Actual Cost Incurred in March
Direct labor	$	64,740
Indirect labor	$	9,430
Utilities	$	6,620
Supplies	$	3,050
Equipment depreciation	$	27,960
Factory rent	$	8,400
Property taxes	$	2,500
Factory administration	$	15,810

Required:

1. Prepare the Production Department’s planning budget for the month.

2. Prepare the Production Department’s flexible budget for the month.

3. Prepare the Production Department’s flexible budget performance report for March, including both the spending and activity variances.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared...

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Cost Formulas Direct labor $16.30q Indirect labor $4,500 + $1.40q Utilities $5,400 + $0.60q Supplies $1,200 + $0.20q Equipment depreciation $18,300 + $2.90q Factory rent $8,100 Property taxes $2,400 Factory administration $13,000 +...

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared...

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Cost Formulas Direct labor $16.30q Indirect labor $4,700 + $1.90q Utilities $5,300 + $0.40q Supplies $1,300 + $0.20q Equipment depreciation $18,500 + $2.70q Factory rent $8,500 Property taxes $2,700 Factory administration $13,300 +...

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared...

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Cost Formulas Direct labor $16.40q Indirect labor $4,400 + $1.40q Utilities $5,600 + $0.60q Supplies $1,600 + $0.30q Equipment depreciation $18,700 + $2.80q Factory rent $8,400 Property taxes $2,800 Factory administration $13,300 +...

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared...

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Cost Formulas Direct labor $16.30q Indirect labor $4,700 + $1.40q Utilities $5,400 + $0.80q Supplies $1,800 + $0.30q Equipment depreciation $18,600 + $2.40q Factory rent $8,100 Property taxes $2,400 Factory administration $13,300 +...

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared...

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Cost Formulas Direct labor $16.50q Indirect labor $4,200 + $1.40q Utilities $5,200 + $0.40q Supplies $1,300 + $0.10q Equipment depreciation $18,400 + $2.80q Factory rent $8,300 Property taxes $2,800 Factory administration $13,300 +...

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared...

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Cost Formulas Direct labor $16.20q Indirect labor $4,400 + $1.70q Utilities $5,500 + $0.30q Supplies $1,800 + $0.40q Equipment depreciation $18,600 + $2.40q Factory rent $8,100 Property taxes $2,500 Factory administration $13,100 +...

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared...

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Cost Formulas Direct labor $16.10q Indirect labor $4,100 + $2.00q Utilities $5,800 + $0.30q Supplies $1,700 + $0.30q Equipment depreciation $18,600 + $2.50q Factory rent $8,500 Property taxes $2,800 Factory administration $13,100 +...

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared...

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Cost Formulas Direct labor $16.60q Indirect labor $4,600 + $1.60q Utilities $5,700 + $0.90q Supplies $1,200 + $0.20q Equipment depreciation $18,800 + $2.90q Factory rent $8,100 Property taxes $2,500 Factory administration $13,200 +...

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared...

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Cost Formulas Direct labor $16.30q Indirect labor $4,500 + $1.60q Utilities $5,300 + $0.70q Supplies $1,200 + $0.10q Equipment depreciation $18,100 + $2.90q Factory rent $8,100 Property taxes $2,700 Factory administration $13,700 +...

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared...

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Cost Formulas Direct labor $16.60q Indirect labor $4,800 + $1.30q Utilities $5,700 + $0.70q Supplies $1,600 + $0.20q Equipment depreciation $18,800 + $2.50q Factory rent $8,600 Property taxes $2,600 Factory administration $13,600 +...

Subjects