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 (38.12 KiB) Viewed 11 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 Cost Formulas. Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration. $16.40g $4,000 $1.80g $5,700+ $0.70q $1,200 50.30g $18,000 $2.70g $8,400 $2,900 $0.80q $13,200 The Production Department planned to work 4,400 labor-hours in March; however, it actually worked 4,200 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March $70,480 $ 11,100 $9,170 $ 2,730 $ 29,340 $ 8,800 $ 2,900 $ 15,950 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.