Production Department Planned Assignment

1 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: 8 Cost Formulas points Direct labor Indirect labor Utilities $16.20q $4,400 $2.10g $5,500 $0.40q Supplies Equipment depreciation Factory rent Property taxes Factory administration $1,300 $0.40q $18,800 $2.60g $8,400 $2,700 $13,300 $0.60q eBook Print References

The Production Department planned to work 4,300 labor-hours in March; however, it actually worked 4,100 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March $67,980 $12,610 $ 7,610 $ 3,230 $29,460 $ 8,800 2,700 $15,110 Direct labor Indirect labor Utilities Supplies 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. Mc Graw Hill Education Prev 1 of 5 Next Che 1 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 8 points Prepare the Production Department's planning budget for the mont. Packaging Solutions Corporation eBook Production Department Planning Budget Print For the Month Ended March 31 References Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense C Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 2 Required 1 Required 3 Prepare the Production Department's flexible budget for the month. Packaging Solutions Corporation ook Production Department Flexible Budget rint For the Month Ended March 31 rences Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense 0 Required 1 > Required 3 Mc Check 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 varia for unfavorable, and “None” for no effect (i.e., zero variance). Input all amounts as positive ok Packaging Solutions Corporation t Spending Variances nces For the Month Ended March 31 Actual Results Flexible Spending Variances Budget Labor-hours 4,100 Direct labor 67,980 Indirect labor 12,610 Utility Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense 7,610 3,230 29,460 8,800 2,700 15,110 $ 147,500 Required 2 Required 3.

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