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 $ 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 actual costs incurred in March in the Production Department 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 The company had budgeted for an activity level of 8,000 labor hours in March Complete the Production Departments 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 3 The company actually worked 8,400 labor hours in March Complete the Production Departments 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 $0 Complete the Production Departments 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 ) Packaging Solutions Corporation Production Department Flexible Budget Performance Report For the Month Ended March 31 Spending Variances Activity Variances Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense

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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				$	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 actual costs incurred in March in the Production Department 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:

The company had budgeted for an activity level of 8,000 labor-hours in March. Complete the Production Departments 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

3. The company actually worked 8,400 labor-hours in March. Complete the Production Departments 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	$0

Complete the Production Departments 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.)

Packaging Solutions Corporation
Production Department Flexible Budget Performance Report
For the Month Ended March 31
	Spending Variances	Activity Variances
Direct labor
Indirect labor
Utilities
Supplies
Equipment depreciation
Factory rent
Property taxes
Factory administration
Total expense