Ch. 9:

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 FormulasDirect labor$16.40qIndirect labor$4,500 + $1.60qUtilities$5,500 + $0.50qSupplies$1,600 + $0.10qEquipment depreciation$18,400 + $2.60qFactory rent$8,500Property taxes$2,900Factory administration$13,400 + $0.80q

The Production Department planned to work 4,500 labor-hours in March; however, it actually worked 4,300 labor-hours during the month. Its actual costs incurred in March are listed below:

Actual Cost Incurred in MarchDirect labor$ 72,120Indirect labor$ 10,880Utilities$ 8,140Supplies$ 2,260Equipment depreciation$ 29,580Factory rent$ 8,900Property taxes$ 2,900Factory administration$ 16,230

Required:

1. Prepare the Production Departments planning budget for the month.

2. Prepare the Production Departments flexible budget for the month.

3. Calculate the spending variances for all expense items.

Complete this question by entering your answers in the tabs below. Prepare the Production Department's flexible budget for the month. Complete this question by entering your answers in the tabs below. Calculate the spending variances for all expense items. (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.) Complete this question by entering your answers in the tabs below. Prepare the Production Department's planning budget for the month. 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: The Production Department planned to work 4,500 labor-hours in March; however, it actually worked 4,300 labor-hours during the month. Its actual costs incurred in March are listed below: Required: 1. Prepare the Production Department's planning budget for the month. 2. Prepare the Production Department's flexible budget for the month. 3. Calculate the spending variances for all expense items. Complete this question by entering your answers in the tabs below. Prepare the Production Department's planning budget for the month