Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are preparedmonthly for esch deportment. The planning budget and flexible budget for the Production Department are based on the followingformulas, where q is the number of labor-hours worked in a month:Cost FormulasDirect laborIndirect laborUtiliticsSuppliesEquipment depreciationFactory rentРгopсrty tакеsFactory adninistration$15.88g$8, 280 + $1.68g$6,400 + $e.seg$1,180 + $e.48g$23,0ee + $3.78g$8,400$2,100$11,700 + $1.9egThe Production Department planned to work 8,000 lebor-hours in March; however, it octually worked 8,400 lobor-hours during themonth. Its actual costs incurred in March are listed below:Actual Cost Incurredin March$134,738$ 19,860$ 14,578$ 4,988$ 54, 88e$ 8,700$ 2,100$ 26,470Direct laborIndirect laborlitiesSuppliesEquipment depreciationFactory rentProperty taxesFactory administrationRequired: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 fiexible budget performance report for March, including both the spending and sctivityvariances.Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Prepare the Production Department's planning budget for the month.Packaging Solutions CorporationProduction Department Planning BudgetFor the Month Ended March 31Direct laborIndirect laborUtilitiesSuppliesEquipment depreciationFactory rentProperty taxesFactory administrationTotal expense< Required 1Required 2 >

Flexible budget can be Rearranged as per activity to be achieved. It provides comparative results…

Answered: o work 8.000 labor-hours in March;…

Business

Accounting

o work 8.000 labor-hours in March; however ch are listed below: tual Cost Incurred in March $134,730 $ 19,860

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

100%

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared
monthly for esch deportment. 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
Utilitics
Supplies
Equipment depreciation
Factory rent
Ргopсrty tакеs
Factory adninistration
$15.88g
$8, 280 + $1.68g
$6,400 + $e.seg
$1,180 + $e.48g
$23,0ee + $3.78g
$8,400
$2,100
$11,700 + $1.9eg
The Production Department planned to work 8,000 lebor-hours in March; however, it octually worked 8,400 lobor-hours during the
month. Its actual costs incurred in March are listed below:
Actual Cost Incurred
in March
$134,738
$ 19,860
$ 14,578
$ 4,988
$ 54, 88e
$ 8,700
$ 2,100
$ 26,470
Direct labor
Indirect labor
lities
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 fiexible budget performance report for March, including both the spending and sctivity
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
< Required 1
Required 2 >

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