Exercise 9-14 (Algo) Flexible Budget Performance Report in a Cost Center [LO9-1, LO9-2, LO9-3, LO9-4] 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 qis the number of labor-hours worked in a month: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Cost Formulas $16.409 $4,000+ $1.40q $5,300 + $0.30q $1,600 $0.10q $18,500 + $3.00q $8,200 $2,500 $13,600+ se.60g The Production Department planned to work 4.400 labor-hours In March; however, it actually worked 4,200 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 Total expense Actual Cost Incurred in March 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. Prepare the Production Department's flexible budget performance report for March, Including both the spending and activity variances. $ 70,480 $ 9,340 $ 7,010 $ 2,250 $ 31,100 $ 8,600 $ 2,500 $ 15,470 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the Production Department's planning budget for the month. Packaging Solutions Corporation Production Department Planning Budget For the Month Ended March 31 < Required 1 Required 2 >
Exercise 9-14 (Algo) Flexible Budget Performance Report in a Cost Center [LO9-1, LO9-2, LO9-3, LO9-4] 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 qis the number of labor-hours worked in a month: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Cost Formulas $16.409 $4,000+ $1.40q $5,300 + $0.30q $1,600 $0.10q $18,500 + $3.00q $8,200 $2,500 $13,600+ se.60g The Production Department planned to work 4.400 labor-hours In March; however, it actually worked 4,200 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 Total expense Actual Cost Incurred in March 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. Prepare the Production Department's flexible budget performance report for March, Including both the spending and activity variances. $ 70,480 $ 9,340 $ 7,010 $ 2,250 $ 31,100 $ 8,600 $ 2,500 $ 15,470 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the Production Department's planning budget for the month. Packaging Solutions Corporation Production Department Planning Budget For the Month Ended March 31 < Required 1 Required 2 >
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
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:
| Cost Formulas | |
|---|---|
| Direct labor | $16.40q |
| Indirect labor | $4,000 + $1.40q |
| Utilities | $5,300 + $0.30q |
| Supplies | $1,600 + $0.10q |
| Equipment |
$18,500 + $3.00q |
| Factory rent | $8,200 |
| Property taxes | $2,500 |
| Factory administration | $13,600 + $0.60q |
The Production Department planned to work 4,400 labor-hours in March; however, it actually worked 4,200 labor-hours during the month. Its actual costs incurred in March are listed below:
| Actual Cost Incurred in March | |
|---|---|
| Direct labor | $ 70,480 |
| Indirect labor | $ 9,340 |
| Utilities | $ 7,010 |
| Supplies | $ 2,250 |
| Equipment depreciation | $ 31,100 |
| Factory rent | $ 8,600 |
| Property taxes | $ 2,500 |
| Factory administration | $ 15,470 |
Required:
- Prepare the Production Department’s planning budget for the month.
- Prepare the Production Department’s flexible budget for the month.
- Prepare the Production Department’s flexible budget performance report for March, including both the spending and activity variances.
![Exercise 9-14 (Algo) Flexible Budget Performance Report in a Cost Center [LO9-1, LO9-2, LO9-3, LO9-4]
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 is the number of labor-hours worked in a month:
Direct labor
Indirect labor
Utilities
Supplies
Equipment depreciation
Factory rent
Property taxes
Factory administration
The Production Department planned to work 4,400 labor-hours in March; however, it actually worked 4,200 labor-hours during the
month. Its actual costs incurred in March are listed below:
Direct labor
Indirect labor
Utilities
Supplies
Equipment depreciation
Cost Formulas
$16.409
$4,000+ $1.489
$5,300 + $0.309
$1,600+ $0.10q
$18,500+
$3.009
$8,200
$2,500
$13,600 + $0.609
Actual Cost
Incurred in
March
$ 70,480
$ 9,340
$ 7,010
$2,250
$ 31,100
$ 8,600
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. Prepare the Production Department's flexible budget performance report for March, including both the spending and activity
variances.
Direct labor
Indirect labor
Utilities
Supplies
Equipment depreciation
Factory rent
Property taxes
Factory administration
Total expense
$ 2,500
$ 15,470
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Prepare the Production Department's planning budget for the month.
Packaging Solutions Corporation
Production Department Planning Budget
For the Month Ended March 31
< Required 1
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F032b8689-1487-47d0-960a-ec81d5d77a8e%2F98004bf0-64b0-4ddb-83b1-5f16efa12572%2F2ztud4d_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 9-14 (Algo) Flexible Budget Performance Report in a Cost Center [LO9-1, LO9-2, LO9-3, LO9-4]
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 is the number of labor-hours worked in a month:
Direct labor
Indirect labor
Utilities
Supplies
Equipment depreciation
Factory rent
Property taxes
Factory administration
The Production Department planned to work 4,400 labor-hours in March; however, it actually worked 4,200 labor-hours during the
month. Its actual costs incurred in March are listed below:
Direct labor
Indirect labor
Utilities
Supplies
Equipment depreciation
Cost Formulas
$16.409
$4,000+ $1.489
$5,300 + $0.309
$1,600+ $0.10q
$18,500+
$3.009
$8,200
$2,500
$13,600 + $0.609
Actual Cost
Incurred in
March
$ 70,480
$ 9,340
$ 7,010
$2,250
$ 31,100
$ 8,600
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. Prepare the Production Department's flexible budget performance report for March, including both the spending and activity
variances.
Direct labor
Indirect labor
Utilities
Supplies
Equipment depreciation
Factory rent
Property taxes
Factory administration
Total expense
$ 2,500
$ 15,470
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Prepare the Production Department's planning budget for the month.
Packaging Solutions Corporation
Production Department Planning Budget
For the Month Ended March 31
< Required 1
Required 2 >
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