Exercise 9-16 Flexible Budgets in a Cost Center (LO9-1, LO9-2] Packaging Solutions Corporation manufactures and ses a wide variety of packaging Perfomance reports are prepared monthly for each department. The planning budget Sexble budget for the Production Department are based on the following formulas, w! the number of labor hours worked in a month Direct labor Indirect labor Cost Formulas $16.409 $4,600 + $1. 0 Utilities $5,100 + 50.00 Supplies Equipment depreciation Factory rent Property taxes Factory administration $1,300 + $0.30 $18.400 + $2.709 SB, 300 $2,500 $13,300 + $0.80 The Production Department planned to work 4.400 labor-hours in March; however it a worked 4.200 labor-hours during the month. Its actual costs incurred in March are liste Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Actual Cost Incurred in March $70,480 $11,700 $9.010 $ 2,830 $29,740 $8,700 $ 2,500 $16,050 Required: L Prepare the production Department's planning budget for the month 2. Prepare the Production Department's exible budget for the month 3. Calculate the spending variances for a expense Items Answer is not complete. Complete this question by entering your answers in the tabs below Required Required Required Prepare the Production Department's planning budget for the month. Packaging Solutions Corporation Production Department Planning Budget For the Month Ended March 31 Budgeted labor hours $ 65,600X 12.521 8.620 2,620 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense 3.020 8.3000 2.500 16.820 $ 120,000 Answer is not complete. Complete this question by entering your answers in the tabs Required Required Required Prepare the Production Department's flexible budget for the month. Packaging Solutions Corporation Production Department Flexible Budget For the Month Ended March 31 Actual labor-hours s 70.400X 125,200 rect labor ndirect labor Jtilities Supplies Equipment lepreciation Factory rent Property taxes Factory dministration otal expense 8.6208 2.620 3.020 8,300 2.5000 16.82% $ 237,460 x Answer is not complete. Complete this question by entering your answers in the tabs Required Required Required Calculate the spending variances for all expense items. (Indicate the variance by selecting "F" for favorable, "U" for unfavorable, and "No zero variance). Input all amounts as positive values.) Packaging Solutions Corporation Spending Variances For the Month Ended March 31 Actual Spending Results Variances 14,200 Flexible Budget Labor-hours Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense $ 70,480 11,700 9.010 2,830 29,740 8,700 2.500 16.050 151,010
