Packaging Solutions Corporation manufactures and sells a wide variety of packagi

Question

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 $16.10q $ 4200+S 160q S 5,600+$ 0 30 S 1,600+S 020q $18,500+ $ 2.70q $8,500 $3,000 $13,600 S 0.60g 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 $ 67,550 S 10,260 $ 7,280 $ 2,670 S 29.570 $ 8,900 $ 3,000 15,410

Explanation / Answer

Ans- 2-   

Budgeted labor hours(b)

3-

Packaging Solution Corporation

Packaging Solution Corporation Production Dep.Flexible budget For month ended March 31st

Budgeted labor hours(b)

4,100 Direct labor (16.10*b) (16.10*4,100) 66,010 Indirect labor (4,200+1.60*4,100) 10,760 Utilities (5,600+0.30*4,100) 6,830 Supplies (1,600+0.20*4,100) 2,420 Equipment depreciation(18,500+2.70*4,100) 29,570 Factory rent(8,500) 8,500 Property Taxes(3,000) 3,000 Factory administration(13,600+0.60*4,100) 16,060 Total Expenses $147,250

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.