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 20 q Indirect labor $4,500 $1 80 q Utilities $5,100 $0 40 q Supplies $1,300 $0 40 q Equipment depreciation $18,500 $2 60 q Factory rent $8,000 Property taxes $2,500 Factory administration $13,400 $0 70 q The Production Department planned to work 4,200 labor hours in March however, it actually worked 4,000 labor hours during the month Its actual costs incurred in March are listed below Actual Cost Incurred in March Direct labor $ 66,360 Indirect labor $ 11,240 Utilities $ 7,170 Supplies $ 3,190 Equipment depreciation $ 28,900 Factory rent $ 8,400 Property taxes $ 2,500 Factory administration $ 15,570 Prepare the Production Departments planning budget for the month Packaging Solutions Corporation Production Department Planning Budget For the Month Ended March 31 not attempted not attempted Direct labor $68,040selected answer correct Indirect labor 12,540selected answer incorrect Utilities 7,290selected answer incorrect Supplies 2,860selected answer incorrect Equipment depreciation 29,020selected answer incorrect Factory rent 8,000selected answer correct Property taxes 2,500selected answer correct Factory administration 16,580selected answer incorrect Total expense $146,830 Prepare the Production Departments flexible budget for the month Packaging Solutions Corporation Production Department Flexible Budget For the Month Ended March 31 not attempted not attempted Direct labor $64,800selected answer correct Indirect labor 12,300selected answer incorrect Utilities 6,700selected answer correct Supplies 2,900selected answer correct Equipment depreciation 29,300selected answer incorrect Factory rent 8,000selected answer correct Property taxes 2,500selected answer correct Factory administration 15,900selected answer incorrect Total expense $142,400

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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	$16.20q
Indirect labor	$4,500 + $1.80q
Utilities	$5,100 + $0.40q
Supplies	$1,300 + $0.40q
Equipment depreciation	$18,500 + $2.60q
Factory rent	$8,000
Property taxes	$2,500
Factory administration	$13,400 + $0.70q

The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 labor-hours during the month. Its actual costs incurred in March are listed below:

	Actual Cost Incurred in March
Direct labor	$	66,360
Indirect labor	$	11,240
Utilities	$	7,170
Supplies	$	3,190
Equipment depreciation	$	28,900
Factory rent	$	8,400
Property taxes	$	2,500
Factory administration	$	15,570

Prepare the Production Departments planning budget for the month.

Packaging Solutions Corporation
Production Department Planning Budget
For the Month Ended March 31
not attempted	not attempted

Direct labor	$68,040selected answer correct
Indirect labor	12,540selected answer incorrect
Utilities	7,290selected answer incorrect
Supplies	2,860selected answer incorrect
Equipment depreciation	29,020selected answer incorrect
Factory rent	8,000selected answer correct
Property taxes	2,500selected answer correct
Factory administration	16,580selected answer incorrect
Total expense	$146,830

Prepare the Production Departments flexible budget for the month.

Packaging Solutions Corporation
Production Department Flexible Budget
For the Month Ended March 31
not attempted	not attempted

Direct labor	$64,800selected answer correct
Indirect labor	12,300selected answer incorrect
Utilities	6,700selected answer correct
Supplies	2,900selected answer correct
Equipment depreciation	29,300selected answer incorrect
Factory rent	8,000selected answer correct
Property taxes	2,500selected answer correct
Factory administration	15,900selected answer incorrect
Total expense	$142,400