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

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Packaging Solutions Corporation Manufactures And Sells A Wide Variety Of Packaging Products Performance Reports Are Pre 1 (136.89 KiB) Viewed 33 times

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: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 labor-hours during the month. Its actual costs incurred in March are listed below: Direct labor Indirect labor Utilities Supplies Equipment depreciation Cost Formulas $16.20g $4,300+ $1.40g $5,300 + $0.90g $1,400 + $0.20g $18,200 + $2.50g $8,300 $2,500 $13,400 + $0.50g Factory rent Property taxes Factory administration Actual Cost Incurred in March $ 66,360 $ 9,360 $ 9,470 $ 2,450 $ 28,200 $ 8,700 $ 2,500 $ 14,730

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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the Production Department's flexible budget performance report for March, including both the spending and activity variances. (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.) Labor-hours Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense Packaging Solutions Corporation Production Department Flexible Budget Performance Report For the Month Ended March 31 Actual Results 4,000 $ 66,360 9,360 9,470 2.450 28,200 8,700 $ 2,500 14,730 141,770 < Required 2 Flexible Budget Required 3 > Planning Budget