| Required: |
| 1. | The company had budgeted for an activity level of 4,400 labor-hours in March. Complete the Production Departments planning budget for the month. | 2. | The company actually worked 4,200 labor-hours in March. Complete the Production Departments flexible budget for the month. | 3. | 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.) | 4. | Compute the materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) | 5. | Compute the labor rate and efficiency variances for the month. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Do not round your intermediate calculations.) | 6. Required: | | Compute the materials price and quantity variances for the month. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) | | | | | |
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 Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration $16.50q $ 4,400$ 2.00q $ 5,700 +$ 0.40q $ 1,800+ $ 0.20q $18,100 $ 2.70q $8,500 $2,500 $13,400+ $ 0.60q The actual costs incurred in March in the Production Department are listed below: Actual Cost Incurred in Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration March $70,920 $12,380 $ 7,850 $ 2,890 $29,440 $ 8,900 $ 2,500 $15,270 Required 1. The company had budgeted for an activity level of 4,400 labor-hours in March. Complete 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 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 Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration $16.50q $ 4,400$ 2.00q $ 5,700 +$ 0.40q $ 1,800+ $ 0.20q $18,100 $ 2.70q $8,500 $2,500 $13,400+ $ 0.60q The actual costs incurred in March in the Production Department are listed below: Actual Cost Incurred in Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration March $70,920 $12,380 $ 7,850 $ 2,890 $29,440 $ 8,900 $ 2,500 $15,270 Required 1. The company had budgeted for an activity level of 4,400 labor-hours in March. Complete 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
