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 Formulas Direct labor $16 40 q Indirect labor $4,500 $1 30 q Utilities $5,700 $0 60 q Supplies $1,700 $0 20 q Equipment depreciation $18,600 $2 50 q Factory rent $8,500 Property taxes $2,700 Factory administration $13,400 $0 90 q The Production Department planned to work 4,300 labor hours in March however, it actually worked 4,100 labor hours during the month Its actual costs incurred in March are listed below Actual Cost Incurred in March Direct labor $ 68,840 Indirect labor $ 9,270 Utilities $ 8,670 Supplies $ 2,770 Equipment depreciation $ 28,850 Factory rent $ 8,900 Property taxes $ 2,700 Factory administration $ 16,500 Required 1 Prepare the Production Departments planning budget for the month 2 Prepare the Production Departments flexible budget for the month 3 Prepare the Production Departments flexible budget performance report for March, including both the spending and activity variances Complete this question by entering your answers in the tabs below Prepare the Production Department's planning budget for the month Complete this question by entering your answers in the tabs below Prepare the Production Department's flexible budget for the month 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 )

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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

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 Formulas
Direct labor	$16.40q
Indirect labor	$4,500 + $1.30q
Utilities	$5,700 + $0.60q
Supplies	$1,700 + $0.20q
Equipment depreciation	$18,600 + $2.50q
Factory rent	$8,500
Property taxes	$2,700
Factory administration	$13,400 + $0.90q

The Production Department planned to work 4,300 labor-hours in March; however, it actually worked 4,100 labor-hours during the month. Its actual costs incurred in March are listed below:

	Actual Cost Incurred in March
Direct labor	$ 68,840
Indirect labor	$ 9,270
Utilities	$ 8,670
Supplies	$ 2,770
Equipment depreciation	$ 28,850
Factory rent	$ 8,900
Property taxes	$ 2,700
Factory administration	$ 16,500

Required:

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

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

image text in transcribed

3. Prepare the Production Departments flexible budget performance report for March, including both the spending and activity variances.

image text in transcribed

Complete this question by entering your answers in the tabs below. Prepare the Production Department's planning budget for the month. Complete this question by entering your answers in the tabs below. Prepare the Production Department's flexible budget for the month. 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.)