Homework Help is Here – Start Your Trial Now!
Business
Accounting
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 Direct labor Indirect labor Utilities Supplies Equipment depreciation 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: Factory rent Property taxes Factory administration $16.500 $4,700 $1,40g $5,400+ $0.30q $1,700+ $0.209 $18,500+ $2.70q $8,400 $2,800 $13,200+ $0.70g 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 a

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 Direct labor Indirect labor Utilities Supplies Equipment depreciation 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: Factory rent Property taxes Factory administration $16.500 $4,700 $1,40g $5,400+ $0.30q $1,700+ $0.209 $18,500+ $2.70q $8,400 $2,800 $13,200+ $0.70g 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 a

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Need help
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 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 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 $16.500 $4,700 $1,400 $5,400+ $0.30q $1,700+ $0.20g $18,500 $2.709 $8,400 $2,800 $13, 200+ $0.70g 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.
Transcribed Image Text: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 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 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 $16.500 $4,700 $1,400 $5,400+ $0.30q $1,700+ $0.20g $18,500 $2.709 $8,400 $2,800 $13, 200+ $0.70g 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. 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 flexible budget for the month. Packaging Solutions Corporation Production Department Flexible Budget For the Month Ended March 31 Actual labor-hours ✔ Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense 3,800✔ $ 62,700✔ 10,020 6,540 2,460 28,660 8,400 2,800✔ Answer is not complete. ‹‹ ‹ * << 15,860✔ IS 137,440 < Required 1 Required 3 >
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 flexible budget for the month. Packaging Solutions Corporation Production Department Flexible Budget For the Month Ended March 31 Actual labor-hours ✔ Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense 3,800✔ $ 62,700✔ 10,020 6,540 2,460 28,660 8,400 2,800✔ Answer is not complete. ‹‹ ‹ * << 15,860✔ IS 137,440 < Required 1 Required 3 >
Expert Solution
steps

Step by step

Solved in 5 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost allocation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS