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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: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration. Direct labor Indirect labor Utilities 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: Supplies Equipment depreciation. Cost Formulas $16.30q $4,300+ $1.40q $5,500+ $0.909 $1,300 $0.309 $18,200 $2.60q $8,400 Factory rent Property taxes Factory administration $2,700 $13,600 + $0.60q Actual Cost Incurred in March $ 65,150 $ 9,220 $ 9,580 $ 2,740 $ 28,340 $ 8,800 $ 2,700 $ 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. Required 1 Required 2 Required 3 Complete this question by entering your answers in the tabs below.
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