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 $15 80 q Indirect labor $8,200 $1 60 q Utilities $6,400 $0 80 q Supplies $1,100 $0 40 q Equipment depreciation $23,000 $3 70 q Factory rent $8,400 Property taxes $2,100 Factory administration $11,700 $1 90 q The Production Department planned to work 8,000 labor hours in March however, it actually worked 8,400 labor hours during the month Its actual costs incurred in March are listed below Actual Cost Incurred in March Direct labor $ 134,730 Indirect labor $ 19,860 Utilities $ 14,570 Supplies $ 4,980 Equipment depreciation $ 54,080 Factory rent $ 8,700 Property taxes $ 2,100 Factory administration $ 26,470 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 Complete this question by entering your answers in the tabs below 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	$15.80q
Indirect labor	$8,200 + $1.60q
Utilities	$6,400 + $0.80q
Supplies	$1,100 + $0.40q
Equipment depreciation	$23,000 + $3.70q
Factory rent	$8,400
Property taxes	$2,100
Factory administration	$11,700 + $1.90q

The Production Department planned to work 8,000 labor-hours in March; however, it actually worked 8,400 labor-hours during the month. Its actual costs incurred in March are listed below:

	Actual Cost Incurred in March
Direct labor	$ 134,730
Indirect labor	$ 19,860
Utilities	$ 14,570
Supplies	$ 4,980
Equipment depreciation	$ 54,080
Factory rent	$ 8,700
Property taxes	$ 2,100
Factory administration	$ 26,470

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.

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. Complete this question by entering your answers in the tabs below. 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.)