Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The pianning 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 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 Cost Formulas Factory rent Property taxes Factory administration $16.500 $1,40g $4,700 $5,400+ $0.30q $1,700 + $0.209 $18,500+ $2.78q $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 an activity variances.
Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The pianning 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 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 Cost Formulas Factory rent Property taxes Factory administration $16.500 $1,40g $4,700 $5,400+ $0.30q $1,700 + $0.209 $18,500+ $2.78q $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 an activity variances.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Fix the wrong one please
![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb0c53c3c-d25b-4f46-ae7f-d9559756d1d4%2F7aba792f-abaa-4b99-a84c-1d63f89939e1%2Fj17ywr_processed.jpeg&w=3840&q=75)
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.
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Prepare the Production Department's flexible budget performance report for March, including both the spending and activity variances.
(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).
Input all amounts as positive values.)
Labor-hours
Direct labor
Indirect labor
Utilities
Supplies
Equipment depreciation
Factory rent
Property taxes
Factory administration
Total expense
Packaging Solutions Corporation
Production Department Flexible Budget Performance Report
For the Month Ended March 31
Actual
Results
3,800
Answer is not complete.
$ 64,320
9,480
6,990
2,710
28,760
8,800
2,800
15,230
$ 139,090
$ 1,620
(540)
450
250
100
400
0
(630)
$ 1,650 XU
U
F
U
U
None
U
None
F
< Required 2
* * * * * * * * *
✔
✔
Flexible
Budget
3,800
S 62,700$ 3,300
10,020
6,540
2,460
28,660X
8,400
2,800
15,860
137,440
280
40✔
540
3 3 3 3 3 3 3 3
60 F
0
F
F
XS 4,360
0 None
None
F
140 F
F
333333
Planning
Budget
4,000
$ 66,000
10,300
6.600
2,500
29,200 X
8,400✔
2,800
♥ 16,000
$ 141,800 X
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