Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Its Production Department's planning budget and flexible budget are based on the following formulas, where q is the number of labor-hours worked in a month: Direct labor Indirect labor Utilities Cost Formulas $16.60q $4,300 +$1.60q $5,700 +$0.40q Supplies $1,200 + $0.20q Equipment depreciation Factory rent $18,600 + $2.80q $8,400 $2,500 Property taxes Factory administration $13,100 +$0.50q The Production Department planned to work 4,500 labor-hours in March; however, it actually worked 4,300 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March $ 73,020 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Required: $ 10,680 $ 7,890 $ 2,310 $ 30,640 $ 8,800 $ 2,500 $ 14,580 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. 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 expenses $ 0 Required 1 Required 2 >
Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Its Production Department's planning budget and flexible budget are based on the following formulas, where q is the number of labor-hours worked in a month: Direct labor Indirect labor Utilities Cost Formulas $16.60q $4,300 +$1.60q $5,700 +$0.40q Supplies $1,200 + $0.20q Equipment depreciation Factory rent $18,600 + $2.80q $8,400 $2,500 Property taxes Factory administration $13,100 +$0.50q The Production Department planned to work 4,500 labor-hours in March; however, it actually worked 4,300 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March $ 73,020 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Required: $ 10,680 $ 7,890 $ 2,310 $ 30,640 $ 8,800 $ 2,500 $ 14,580 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. 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 expenses $ 0 Required 1 Required 2 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Its Production Department's planning
budget and flexible budget are based on the following formulas, where q is the number of labor-hours worked in a month:
Direct labor
Indirect labor
Utilities
Cost Formulas
$16.60q
$4,300 +$1.60q
$5,700 +$0.40q
Supplies
$1,200 + $0.20q
Equipment depreciation
Factory rent
$18,600 + $2.80q
$8,400
$2,500
Property taxes
Factory administration
$13,100 +$0.50q
The Production Department planned to work 4,500 labor-hours in March; however, it actually worked 4,300 labor-hours during the
month. Its actual costs incurred in March are listed below:
Actual Cost
Incurred in
March
$ 73,020
Direct labor
Indirect labor
Utilities
Supplies
Equipment depreciation
Factory rent
Property taxes
Factory administration
Required:
$ 10,680
$ 7,890
$ 2,310
$ 30,640
$ 8,800
$ 2,500
$ 14,580
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.
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 expenses
$
0
Required 1
Required 2 >
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