Problem 9-23 Flexible Budgets and Spending Variances [LO9-1, LO9-2] You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Cost Formula 520, 60e - Se.le per machine-hour $40,000 + $1.60 per machine-hour $8.3e per machine-hour $130, eee + $e.70 per machine-hour $7e, eee Utilities Maintenance Supplies Indirect labor Depreciation Actual Cost in March $ 24, 2ee $ 78,180 $ 8,400 $ 149,600 $ 71,500 ces During March, the company worked 26,000 machine-hours and produced 15,000 units. The company had originally planned to work 30,000 machine-hours during March Required: 1. Prepare a fiexible budget for March 2 Prepare a report showing the spending varlances for March Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a flexible budget for March. (Input all amounts as positive values.) FAB Corporation Flexible Budget For the Month Ended March 31 Machine-hours Utilities Maintenance Supplies Exercise 9-16 Flexible Budgets in a Cost Center (L09-1, LO9-2] 4 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 is the number of labor-hours worked in a month 10 points Cost Formulas $15.ge $8,200 + $1.600 $6,400 . $0.00 $1,100 + 50.400 $23,000. 33.700 $0,400 $2,100 $11,700 - $1.989 Direct labor Indirect labor utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration eBook References 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: Direct labor Indirect labor utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Actual Cost Incurred 10 March $134,790 $ 19,860 $ 14,570 $ 4,990 $ 54,se $ 2,700 $2,100 $ 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 Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3 Prepare the Production Department's planning budget for the month. Packaging Solutions Corporation 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 Rex Required 2 > Property taxes Factory administration $ 2,100 $ 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 cos 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 taces Factory administration Total expense Property taxes Factory administration Help Save & Exit Submit $ 2,1ee $ 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 vartances for all expense Items Complete this question by entering your answers in the tabs below. 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, for unfavorable, and "None" for no effect G.e., zero variance). Input all amounts as positive values.) Packaging Solutions Corporation Spending Variances For the Month Ended March 31 Actual Results Spending Variances Flexible Budget Labor-hours 8.400 $ 134,730 19.860 14,570 4.980 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration 54,080 8,700 2.100 26,470 265,490 Total expense S