Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Its Production Department's planningbudget and flexible budget are based on the following formulas, where q is the number of labor-hours worked in a month:Direct laborIndirect laborUtilitiesCost Formulas$16.50q$4,300 +$1.50q$5,300 + $0.80qSupplies$1,400 + $0.20qEquipment depreciationFactory rentProperty taxesFactory administration$18,800+ $3.00q$8,100$2,900$13,000 + $0.709The Production Department planned to work 4,300 labor-hours in March; however, it actually worked 4,100 labor-hours during themonth. Its actual costs incurred in March are listed below:Actual CostIncurred inMarch$ 69,270Direct laborIndirect laborUtilitiesSuppliesEquipment depreciationFactory rentProperty taxesFactory administrationRequired:$ 9,930$ 9,130$ 2,470$ 31,100$ 8,500$ 2,900$ 15,2401. 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.answers in the tabs below.

Step 1: Prepare the Production Department's planning budget for the month:This budget is based on…

Answered: Packaging Solutions Corporation…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Swifty Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Swifty is analyzing the profitability of its two products. Part of this analysis involves estimating the amount of overhead to be assigned to each product line. The information shown below relates to overhead. Units planned for production Material moves per product line Purchase orders per product line Direct labor hours per product line (a) (1) (2) (b1) eTextbook and Media (a) Your answer is correct. (b) The total estimated manufacturing overhead was $260,000. Under traditional costing (which assigns overhead on the basis of direct labor hours), what amount of manufacturing overhead costs are assigned to: (Round answers to 2 decimal places, e.g. 12.25.) One mobile safe (b2) One walk-in safe (a) Your answer is correct. eTextbook and Media $ One walk-in safe $ One mobile safe $ H Your answer is incorrect. $ (b) One walk-in safe Mobile Safes Walk-in…
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Use this information for Harry Company to answer the question that follow.The following data are given for Harry Company: Budgeted production 26,000 units Actual production 27,500 units Materials: Standard price per ounce $6.50 Standard ounces per completed unit 8 Actual ounces purchased and used in production 228,000 Actual price paid for materials $1,504,800 Labor: Standard hourly labor rate $22.00 per hour Standard hours allowed per completed unit 6.6 Actual labor hours worked 183,000 Actual total labor costs $4,020,000 Overhead: Actual and budgeted fixed overhead $1,029,600 Standard variable overhead rate $24.50 per standard labor hour Actual variable overhead costs $4,520,000 Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.)The direct labor rate variance is a.$5,490 favorable b.$5,490 unfavorable c.$33,000 unfavorable d.$33,000 favorable
DO not give answer in image formate
Please solve both a and b questions
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Vikrambahi
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 depreciation $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…
Geovanni Inc. uses standard costs to prepare its flexible budget. Standard and actual costs data for manufacturing overhead for producing 5,000 units of product are as follows: Standard and actual costs data for manufacturing overhead Costs Rate Allocation base per unit Variable overhead $8 per direct labor hour 2 hours Fixed overhead (based on 12,000 hours at 100% capacity) $3 per direct labor hour 2 hours Actual total overhead costs are as follows: Actual Total Overhead Costs Costs Amounts Total variable overhead costs $58,000 Total fixed overhead costs $20,000 Compute the fixed overhead cost variance. Group of answer choices -$7,000 favorable $10,000 unfavorable -$10,000 favorable $18,000 unfavorable
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 Cost Formulas $16.30q $4,300 +$1.50g $5,300 +$0.40g $1.400+ $0.30q $18,200+ $2.70g $8,400 $13,800+ $0.60g $2,600 The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 labor-hours during the month. Its actual costs incurred in March are listed below: Direct labor Actual Cost Incurred in March $ 66,780 Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Required: $ 9,780 $ 7,370 $ 2,870 $ 29,000 $ 8.800 $ 2,600 $ 15,550 1. Prepare the Production…
Belinda Company has the following budgeted variable costs per unit produced: Direct materials $ 7.50 Direct labour 2.24 Variable overhead: Supplies 0.33 Maintenance 0.17 Power 0.18 Budgeted fixed overhead costs per month include supervision of $68,000, depreciation of $71,000, and other overhead of $205,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 120,000 units, 130,000 units, and 145,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.)
s Laval produces lighting fixtures. Budgeted information for its two production departments follows. The departments use machine hours (MH) and direct labor hours (DLH). Overhead cost Direct labor hours Machine hours Fabricating $ 1,260,000 Desk lamp 131,600 DLH 90,000 MH 28,000 DLH 72,500 MH Laval reports the following for one of its products, a desk lamp. Fabricating Department Number of Direct Labor Hours Units per Unit 6,000 4 DLH per unit Assembly $ 336,000 Machine Hours per Unit 3 MH per unit Required 1 Required 2 Required 3 Required: 1. Determine the plantwide overhead rate using 159,600 direct labor hours as the allocation base. 2. Determine the overhead cost per unit for the desk lamp using the plantwide overhead rate. 3. Compute departmental overhead rates based on machine hours in the Fabricating department and direct labor hours in the Assembly department. 4. Determine the overhead cost per unit for the desk lamp using the departmental overhead rates. Complete this question…

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