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 $15.889 Indirect labor $8,200 + $1.689 Utilities $6,400 + $0.869 Supplies $1,100 + $0.400 Equipment depreciation $23,000 + $3.709 Factory rent $8,400 Property taxes $2,100 Factory administration $11,700 + $1.900 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 $ 14,578 Supplies $ 4,980 Equipment depreciation $ 54,080 Factory rent $8,700 Property taxes $ 2,100 Factory administration $ 26,470 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. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the Production Department's planning budget for the month. 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 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 0 Prepare the Production Department's flexible budget for the month. 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 o Required 1 Required 2 Required 3 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 (ie, zero variance). Input all amounts as positive values.) Floxiblo Budget 28 Packaging Solutions Corporation Spending Variances For the Month Ended March 31 Actual Results Spending Variances Labor-hours 8,400 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 Total expense $ 265,490
