- Required 1
- Required 2
- Required 3
Prepare the Production Departments planning budget for the month.
| Required 1 |
| | | 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 | |
Calculate the spending variances for all expense items. (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.)
Required 3
| |
| | | Packaging Solutions Corporation | | Spending Variances | | For the Month Ended March 31 | | | Actual Results | Spending Variances | Flexible Budget | | Labor-hours | 4,300 | | | | | | | | | | | Direct labor | $73,020 | | | | | Indirect labor | 10,430 | | | | | Utilities | 7,640 | | | | | Supplies | 3,260 | | | | | Equipment depreciation | 30,740 | | | | | Factory rent | 8,600 | | | | | Property taxes | 2,600 | | | | | Factory administration | 15,030 | | | | | Total expense | $151,320 | | | | |
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: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Cost Formulas $16.609 $4,500 + $1.50g $5,000 + $0.500 $1,700 + $0.30g $18,700 + $2.809 $8,200 $2,600 $13,100 + $0.60g The Production Department planned to work 4,500 labor-hours in March; however, it actually worked 4,300 labor-hours during the month. Its actual costs incurred in March are listed below: Direct labor Indirect labor Utilities Supplies Actual Cost Incurred in March $ 73,020 $ 10,430 $ 7,640 $ 3,260 $ 30,740 $ 8,600 $ 2,600 $ 15,030 Equipment depreciation Factory rent Property taxes Factory administration 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 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 $
