Need help completing the tables for these: Packaging Solutions Corporation manuf
ID: 2340901 • Letter: N
Question
Need help completing the tables for these:
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: Cost Formulas Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration $16.10g $4,400 + $2.00q $5,400 + $0.60q $1,800 + $0.30q $18,600+$3.10q $8,100 $2,800 $13,400 $0.80q 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 Equipment depreciation Factory rent Property taxes Factory administration Actual Cost Incurred in March $70,770 $ 12,580 $ 8,490 $ 3,360 $ 31,930 $ 8,500 $ 2,800 $ 16,230 Required: 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, including both the spending and activity variances.Explanation / Answer
Packaging Solutions Corp
Production department planning budget for March
Fixed Cost
Variable cost
Total
Units
Cost per unit
Cost
Direct Labor
-
4,500
16.00
72,000
72,000
Indirect Labor
4,400
4,500
2.00
9,000
13,400
Utilities
5,400
4,500
0.60
2,700
8,100
Supplies
1,800
4,500
0.30
1,350
3,150
Equipment depreciation
18,600
4,500
3.10
13,950
32,550
Factory Rent
8,100
4,500
-
-
8,100
Property Taxes
2,800
4,500
-
-
2,800
Factory administration
13,400
4,500
0.80
3,600
17,000
Total
54,500
102,600
157,100
Packaging Solutions Corp
Production department flexible budget for March
Fixed Cost
Variable cost
Total
Units
Cost per unit
Cost
Direct Labor
-
4,300
16.00
68,800
68,800
Indirect Labor
4,400
4,300
2.00
8,600
13,000
Utilities
5,400
4,300
0.60
2,580
7,980
Supplies
1,800
4,300
0.30
1,290
3,090
Equipment depreciation
18,600
4,300
3.10
13,330
31,930
Factory Rent
8,100
4,300
-
-
8,100
Property Taxes
2,800
4,300
-
-
2,800
Factory administration
13,400
4,300
0.80
3,440
16,840
Total
54,500
98,040
152,540
Packaging Solutions Corp
Production department flexible budget performance report
Actual Results (a)
Flexible budget (b)
Planning budget ( c )
Activity variances (c-b)
U/F
Revenue and Spending variances (b-a)
U/F
Direct Labor
70,770
68,800
72,000
3,200
F
(1,970)
U
Indirect Labor
12,580
13,000
13,400
400
F
420
F
Utilities
8,490
7,980
8,100
120
F
(510)
U
Supplies
3,360
3,090
3,150
60
F
(270)
U
Equipment depreciation
31,930
31,930
32,550
620
F
-
Factory Rent
8,500
8,100
8,100
-
(400)
U
Property Taxes
2,800
2,800
2,800
-
-
Factory administration
16,230
16,840
17,000
160
F
610
F
Total
154,660
152,540
157,100
4,560
(2,120)
Packaging Solutions Corp
Production department planning budget for March
Fixed Cost
Variable cost
Total
Units
Cost per unit
Cost
Direct Labor
-
4,500
16.00
72,000
72,000
Indirect Labor
4,400
4,500
2.00
9,000
13,400
Utilities
5,400
4,500
0.60
2,700
8,100
Supplies
1,800
4,500
0.30
1,350
3,150
Equipment depreciation
18,600
4,500
3.10
13,950
32,550
Factory Rent
8,100
4,500
-
-
8,100
Property Taxes
2,800
4,500
-
-
2,800
Factory administration
13,400
4,500
0.80
3,600
17,000
Total
54,500
102,600
157,100
Packaging Solutions Corp
Production department flexible budget for March
Fixed Cost
Variable cost
Total
Units
Cost per unit
Cost
Direct Labor
-
4,300
16.00
68,800
68,800
Indirect Labor
4,400
4,300
2.00
8,600
13,000
Utilities
5,400
4,300
0.60
2,580
7,980
Supplies
1,800
4,300
0.30
1,290
3,090
Equipment depreciation
18,600
4,300
3.10
13,330
31,930
Factory Rent
8,100
4,300
-
-
8,100
Property Taxes
2,800
4,300
-
-
2,800
Factory administration
13,400
4,300
0.80
3,440
16,840
Total
54,500
98,040
152,540
Packaging Solutions Corp
Production department flexible budget performance report
Actual Results (a)
Flexible budget (b)
Planning budget ( c )
Activity variances (c-b)
U/F
Revenue and Spending variances (b-a)
U/F
Direct Labor
70,770
68,800
72,000
3,200
F
(1,970)
U
Indirect Labor
12,580
13,000
13,400
400
F
420
F
Utilities
8,490
7,980
8,100
120
F
(510)
U
Supplies
3,360
3,090
3,150
60
F
(270)
U
Equipment depreciation
31,930
31,930
32,550
620
F
-
Factory Rent
8,500
8,100
8,100
-
(400)
U
Property Taxes
2,800
2,800
2,800
-
-
Factory administration
16,230
16,840
17,000
160
F
610
F
Total
154,660
152,540
157,100
4,560
(2,120)
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