PROBLEM 10.2 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 formalas, where is the number of labor-hours worked in a month Cost Formulas Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent. Property taxes. Factory administration $15.809 $8,200 + $1.609 $6,400 + $0.800 $1,100+ $0.409 $23,000+ $3.709 $8,400 $2,100 $11.700+ $1.900 The actual costs incurred in March in the Production Department are listed below: Actual Cost Incurred In March Direct labor Indirect labor Utilities Supplies Equipment depreciation.. Factory rent. Property taxes. Factory administration $134.730 $19,860 $14,570 $4.980 $54,080 $8,700 $2,100 $26.470 Required: 1. The company had budgeted for an activity level of 8,000 labor hours in March. Prepare the production Department's planning budget for the month 2. The company actually worked 8,400 labor-hours in March. Prepare the production Department's flexible budget for the month 3. Prepare the Production Department's flexible bodget performance report for March, including both the spending and activity Variances 4. What aspects of the flexible budget performance report should be brought to management's attention? Explain Note: You need to follow the same format provided in the PowerPoint slides of the chapter. PROBLEM 10.2 Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for cach department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-bours worked in a month: Cost Formulas Direct labor Indirect labor. Utilities Supplies Equipment depreciation.. Factory rent... Property taxes. Factory administration $15.809 $8,200 + $1.609 $6.400 + $0.809 $1,100 + $0.409 $23,000 + $3.709 $8.400 $2.100 $11.700+ $1.909 The actual costs incurred in March in the Production Department are listed below: Actual Cost Incurred In March Direct labor Indirect labor Utilities Supplies.. Equipment depreciation.. Factory rent. Property taxes... Factory administration $134.730 $19,860 $14,570 $4,980 $54,080 $8,700 $2,100 $26.470 Required: budget for the month 1. The company had budgeted for an activity level of 8,000 labor-hours in March. Prepare the Production Department's planning 2. The company actually worked 8,400 labor-hours in March. Prepare the Production Department's flexible bodeet for the month. 3. Prepare the Production Department's flexible budget performance report for March, including both the spending and activity variances 4. What spects of the flexible budget performance report should be brought to management's attention? Explain Note: You need to follow the same format provided in the PowerPoint slides of the chapter. PROBLEM 10.2 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 formalas, where is the number of labor-hours worked in a month Cost Formulas Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent. Property taxes. Factory administration $15.809 $8,200 + $1.609 $6,400 + $0.800 $1,100+ $0.409 $23,000+ $3.709 $8,400 $2,100 $11.700+ $1.900 The actual costs incurred in March in the Production Department are listed below: Actual Cost Incurred In March Direct labor Indirect labor Utilities Supplies Equipment depreciation.. Factory rent. Property taxes. Factory administration $134.730 $19,860 $14,570 $4.980 $54,080 $8,700 $2,100 $26.470 Required: 1. The company had budgeted for an activity level of 8,000 labor hours in March. Prepare the production Department's planning budget for the month 2. The company actually worked 8,400 labor-hours in March. Prepare the production Department's flexible budget for the month 3. Prepare the Production Department's flexible bodget performance report for March, including both the spending and activity Variances 4. What aspects of the flexible budget performance report should be brought to management's attention? Explain Note: You need to follow the same format provided in the PowerPoint slides of the chapter. PROBLEM 10.2 Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for cach department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-bours worked in a month: Cost Formulas Direct labor Indirect labor. Utilities Supplies Equipment depreciation.. Factory rent... Property taxes. Factory administration $15.809 $8,200 + $1.609 $6.400 + $0.809 $1,100 + $0.409 $23,000 + $3.709 $8.400 $2.100 $11.700+ $1.909 The actual costs incurred in March in the Production Department are listed below: Actual Cost Incurred In March Direct labor Indirect labor Utilities Supplies.. Equipment depreciation.. Factory rent. Property taxes... Factory administration $134.730 $19,860 $14,570 $4,980 $54,080 $8,700 $2,100 $26.470 Required: budget for the month 1. The company had budgeted for an activity level of 8,000 labor-hours in March. Prepare the Production Department's planning 2. The company actually worked 8,400 labor-hours in March. Prepare the Production Department's flexible bodeet for the month. 3. Prepare the Production Department's flexible budget performance report for March, including both the spending and activity variances 4. What spects of the flexible budget performance report should be brought to management's attention? Explain Note: You need to follow the same format provided in the PowerPoint slides of the chapter