Exercise 9-16 (Algo) Flexible Budgets in a Cost Center [LO9-1, LO9-2]

10 Exercise 9-16 (Algo) Flexible Budgets in a Cost Center [LO9-1, LO9-2] 1 points 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 is the number of labor-hours worked in a month: eBook Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Cost Formulas $16.30 $4,300 + $1.509 $5,100 + $0.709 $1,700 + $0.209 $18,600 + $2.809 $8,000 $2,800 $13,600 + $0.609 References 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: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Actual Cost Incurred in March $ 65,150 $ 9,636 $ 8,360 $ 2,730 $ 29,520 $ 8,400 $ 2,800 $ 15,290 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, Chapter 9 Homework a Saved Help 10 1. Prepare me Pro uction Department planning puugelior mne monn. 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. 1 points Required 1 Required 2 Required 3 eBook Prepare the Production Department's planning budget for the month. References Packaging Solutions Corporation Production Department Planning Budget For the Month Ended March 31 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense $ 0 Chapter 9 Homework A Savedl 10 1. Prepare me prouction Departments planning puugel lor the monti. 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. 1 points Required 1 Required 2 Required 3 eBook Prepare the Production Department's flexible budget for the month. References Packaging Solutions Corporation Production Department Flexible Budget For the Month Ended March 31 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense $ Chapter 9 Homework a Saved 10 I. Prepare the proUCLion Departments planning Duugelior the monin. 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. 1 points Required 1 Required 2 Required 3 eBook 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 varlance). Input all amounts as positive values.) References Packaging Solutions Corporation Spending Variances For the Month Ended March 31 Actual Results Spending Variances 3,900 $ 65,150 Flexible Budget Labor-hours Direct labor Indirect labor 9,630 8,360 2.730 29,520 Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration 8,400 2.800 15,290 141,880 Total expense $