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Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Its Production Department's planning budget and flexible budget are based on the following formulas, where q is the number of labor-hours worked in a month: Direct labor Indirect labor Utilities Cost Formulas $16.20g $4,600 +$1.90g $5,400 +$0.00g Supplies $1,600 + $0.20g Equipment depreciation $18,700 +$2.90g Factory rent $8,400 $2,600 $13,300 +$0.60g Property taxes Factory administration The Production Department planned to work 4,100 labor-hours in March; however, it actually worked 3,900 labor-hours during the month. Its actual costs incurred in March are listed below:

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Its Production Department's planning budget and flexible budget are based on the following formulas, where q is the number of labor-hours worked in a month: Direct labor Indirect labor Utilities Cost Formulas $16.20g $4,600 +$1.90g $5,400 +$0.00g Supplies $1,600 + $0.20g Equipment depreciation $18,700 +$2.90g Factory rent $8,400 $2,600 $13,300 +$0.60g Property taxes Factory administration The Production Department planned to work 4,100 labor-hours in March; however, it actually worked 3,900 labor-hours during the month. Its actual costs incurred in March are listed below:

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 63E: Use the following information for Exercises 9-63 and 9-64: Palladium Inc. produces a variety of...
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Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Its Production Department's planning budget and flexible budget are based on the following formulas, where q is the number of labor-hours worked in a month: Direct labor Indirect labor Utilities Cost Formulas $16.20g $4,600 +$1.90g $5,400 + $0.80g Supplies $1,600 + $0.20g Equipment depreciation $18,700 + $2.90g Factory rent $8,400 $2,600 $13,300 + $0.60g Property taxes Factory administration The Production Department planned to work 4,100 labor-hours in March; however, it actually worked 3,900 labor-hours during the month. Its actual costs incurred in March are listed below: cos Direct labor Indirect labor Actual Cost Incurred in March $ 64,740 $ 11,570 Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Required: $ 9,070 $ 2,630 $ 30,010 $ 0,900 $ 2,600 $ 14,990 1. Prepare the Production Department's planning budget for the month. 2. Prepare the Production Department's flexible budget for the month. 3. Prepare the Production Department's flexible budget performance report for March. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the Production Department's flexible budget performance report for March. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ie., zero variance). Input all amounts as positive values. Packaging Solutions Corporation Production Department Flexible Budget Performance Report For the Month Ended March 31 Actual Results Flexible Budget Labor-hours Direct labor 3,900 $ 64,740 Indirect labor 11.570 Ublities 9.070 Supplies 2,630 Equipment depreciation 30.010 Factory rent 8,800 Property taxes 2,600 Factory administration 14,990 Total expenses $ 144,410 <Required 2 Required S Planning Budget
Transcribed Image Text:Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Its Production Department's planning budget and flexible budget are based on the following formulas, where q is the number of labor-hours worked in a month: Direct labor Indirect labor Utilities Cost Formulas $16.20g $4,600 +$1.90g $5,400 + $0.80g Supplies $1,600 + $0.20g Equipment depreciation $18,700 + $2.90g Factory rent $8,400 $2,600 $13,300 + $0.60g Property taxes Factory administration The Production Department planned to work 4,100 labor-hours in March; however, it actually worked 3,900 labor-hours during the month. Its actual costs incurred in March are listed below: cos Direct labor Indirect labor Actual Cost Incurred in March $ 64,740 $ 11,570 Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Required: $ 9,070 $ 2,630 $ 30,010 $ 0,900 $ 2,600 $ 14,990 1. Prepare the Production Department's planning budget for the month. 2. Prepare the Production Department's flexible budget for the month. 3. Prepare the Production Department's flexible budget performance report for March. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the Production Department's flexible budget performance report for March. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ie., zero variance). Input all amounts as positive values. Packaging Solutions Corporation Production Department Flexible Budget Performance Report For the Month Ended March 31 Actual Results Flexible Budget Labor-hours Direct labor 3,900 $ 64,740 Indirect labor 11.570 Ublities 9.070 Supplies 2,630 Equipment depreciation 30.010 Factory rent 8,800 Property taxes 2,600 Factory administration 14,990 Total expenses $ 144,410 <Required 2 Required S Planning Budget
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