Exercise 9-15 (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 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 Di Indirect labor Utilities Cost Formulas The Production Department planned to work 4,000 labor-hours in March; however, it actually worked 3,800 labor-hours during the month. Its actual costs incurred in March are listed below: Supplies Equipment depreciation Factory rent Property taxes Factory administration $16.50q $4,700+ $1.40q $5,400 + $0.309 $1,700+ $0.20q $18,500+ $2.709 $8,400 $2,800 $13, 200+ $0.70q Actual Cost Incurred in March $ 64,320 $ 9,480 $ 6,990 $ 2,710 $ 28,760 $ 8,800 $ 2,800 $ 15,230 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. Required 1 Required 2 Required 3 Complete this question by entering your answers in the tabs below. Prepare the Production Department's planning budget for the month.
Exercise 9-15 (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 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 Di Indirect labor Utilities Cost Formulas The Production Department planned to work 4,000 labor-hours in March; however, it actually worked 3,800 labor-hours during the month. Its actual costs incurred in March are listed below: Supplies Equipment depreciation Factory rent Property taxes Factory administration $16.50q $4,700+ $1.40q $5,400 + $0.309 $1,700+ $0.20q $18,500+ $2.709 $8,400 $2,800 $13, 200+ $0.70q Actual Cost Incurred in March $ 64,320 $ 9,480 $ 6,990 $ 2,710 $ 28,760 $ 8,800 $ 2,800 $ 15,230 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. Required 1 Required 2 Required 3 Complete this question by entering your answers in the tabs below. Prepare the Production Department's planning budget for the month.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text: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.
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
Direct labor
Indirect labor
Utilities
Supplies
Equipment depreciation
Factory rent
Property taxes
Factory administration
Total expense
![es
Exercise 9-15 (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 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
Direct labor
Indirect labor
Utilities
Supplies
Equipment depreciation
Cost Formulas
$16.509
$4,700+ $1.40q
$5,400+ $0.30q
$1,700 + $0.20q
$18,500+ $2.709
$8,400
The Production Department planned to work 4,000 labor-hours in March; however, it actually worked 3,800 labor-hours during the
month. Its actual costs incurred in March are listed below:
Factory rent
Property taxes
Factory administration
$2,800
$13, 200+ $0.709
Actual Cost Incurred in March
$ 64,320
$
9,480
$ 6,990
$ 2,710
$ 28,760
$ 8,800
$ 2,800
$ 15,230
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.
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb0c53c3c-d25b-4f46-ae7f-d9559756d1d4%2F6f783aa3-fb07-489a-b9ba-de9cc5854645%2Fuc94h38_processed.jpeg&w=3840&q=75)
Transcribed Image Text:es
Exercise 9-15 (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 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
Direct labor
Indirect labor
Utilities
Supplies
Equipment depreciation
Cost Formulas
$16.509
$4,700+ $1.40q
$5,400+ $0.30q
$1,700 + $0.20q
$18,500+ $2.709
$8,400
The Production Department planned to work 4,000 labor-hours in March; however, it actually worked 3,800 labor-hours during the
month. Its actual costs incurred in March are listed below:
Factory rent
Property taxes
Factory administration
$2,800
$13, 200+ $0.709
Actual Cost Incurred in March
$ 64,320
$
9,480
$ 6,990
$ 2,710
$ 28,760
$ 8,800
$ 2,800
$ 15,230
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.
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.
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