chapter 9 h 2
Exercise 9-16 Flexible Budgets in a Cost Center [LO9-1,
LO9-2]
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
$4,500 + $1.50q
Utilities
$5,700 + $0.60q
Supplies
$1,200 + $0.40q
Equipment...