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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 $16.60q $ 4,300 $ 1.50q $5,700 $ 0.60q $1,400 S 0.30q $18,600+$ 3.00q $8,400 $2,600 $13,500 S 0.50q The actual costs incurred in March in the Production Department are listed below: Actual Cost Incurred in Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration March $ 64,720 $9,480 $ 8,490 $2,810 $ 30,000 $ 8,800 $2,600 $14,730
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