ings Review View Help y Tell meE·E·G· T AaBbCcDd AaBbCcDd AaBbC AaBbCct AaB AaBbCCD AaBbCCDd A••• 1 Normal 1 No Spac... Heading 1 Heading 2 TitleSubtitle Subtle Em...BIParagraphStylesPackaging Solutions Corporation manufactures and sells a wide variety of packaging products.Performance reports are prepared monthly for each department. The planning budget and flexiblebudget for the Production Department are based on the following formulas, where q is the number oflabor-hours worked in a month: cost formulasDirect labor$16.20qIndirect labor $4,600+ $1.50qUtilities $5,200 + $0.40qSuppliesEquipment depreciation$1,400 + $0.30qFactory rent $8,400Property taxes $2,800Factory administration $13,300 + $0.60qThe Production Department planned to work 4,000 labor-hours in March; however, it actually worked3,800 labor-hours during the month. Its actual costs incurred in March are listed below:Actual Cost Incurred in MarchDirect labor $ 63,120Indirect labor $9,780Utilities $7,190Supplies$ 2,810Equipment depreciation$18,800 + $2.60qEpic$ 28,680Factory rent $ 8,800Property taxes $2,800Factory administration $14,930W]2N/REH 4285 2W/PED4375 25/PP4475 2T4425 3T4575 4T1147 ST3W4WSW4220 2E/Antepartum4275 Cath/Hol2200 Resp 44652300 House Supervisor2400 Biomed2500 Labor/Delivery4200 SPU2100 Dialysis4460 Code Blue4492 Security4071 House Keeping4250 MRICat Scan401740304895 4860 Mailings Review ViewBiICHelpTell me what you want to doT AaBbCcDd AaBbCcDd AaBbC AaBbCcL AaB AaBbcc1 Normal 1 No Spac... Heading 1Heading 2TitleSubtitleStylesParagraph1. Prepare the Production Department's planning budget for the month.2. Prepare the Production Department's flexible budget for the month.3. Calculate the spending variances for all expense items.Prepare the Production Department's planning budget for the month.Packaging Solutions CorporationProduction Department Planning BudgetFor the Month Ended March 31Direct labor:Indirect labor:Utilities:Supplies:Equipment depreciation:Factory rent:Property taxes:Factory administration:Total expense:Document1 - WordW2N/REH4W4285 2W/PED25/PP4425 3T4220 2E/Antepartum2200 Resp 446523002100 Dialysis4492 Security

Direct costs are the expenses that are directly used for the production of goods and services for…

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 $16.20q Indirect labor $4,600+ $1.50q Utilities $5,200+ $0.40q Supplies Equipment depreciation Factory rent $8,400 Property taxes $2,800 Factory administration $13,300 + $0.60q 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: Actual Cost Incurred in March Direct labor $ 63,120 Indirect labor $9,780 Utilities $7,190 Supplies $ 2,810 Equipment depreciation Factory rent $8,800 Property taxes $2,800 Factory administration $14,930 $1,400 + $0.30q $18,800 + $2.60q $ 28,680

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 $16.20q Indirect labor $4,600+ $1.50q Utilities $5,200+ $0.40q Supplies Equipment depreciation Factory rent $8,400 Property taxes $2,800 Factory administration $13,300 + $0.60q 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: Actual Cost Incurred in March Direct labor $ 63,120 Indirect labor $9,780 Utilities $7,190 Supplies $ 2,810 Equipment depreciation Factory rent $8,800 Property taxes $2,800 Factory administration $14,930 $1,400 + $0.30q $18,800 + $2.60q $ 28,680

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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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 qis the number of labor-hours worked in a month: Cost Formulas $16.60g $4, 200 + $1.60g $5,300 + $0.70g $1,700 + $0.30g $18,500 $2.90g $8, 300 $2,500 $13,100 + $0.80g Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory adeinistration The Production Department planned to work 4,100 labor-hours in March; however, it actually worked 3,900 labor-hours during the month. Its actual costs incurred in March are listed below: Direct labor Indirect labor Utilities Supplies Equipnent depreciation Factory rent Property taxes Factory administration Actual Cost Incurred in March $ 66,380 $ 9,940 $ 8,560 $ 3,140 $ 29,810 $ 8,700 $2,500 $ 15,610 Required: 1. Prepare the Production…
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III. Folsom Company manufactures specialty tools to customer order. There are three producing departments. Departmental information on budgeted overhead and various activity measures for the coming year is as follows: Estimated overhead Direct labor hours Direct labor cost Machine hours Direct materials Direct labor cost Direct labor hours: Welding $ 220,000 $ 4,500 90,000 5,000 Welding Assembly Finishing Number of machine hours: Welding Assembly Finishing Assembly $ 62,000 10,000 $ 150,000 1,000 Currently, overhead is applied on the basis of machine hours using a plantwide rate. However, Janine, the controller, has been wondering whether it might be worthwhile to use departmental overhead rates. She has analyzed the overhead costs and drivers for the various departments and decided that Welding and Finishing should base their overhead rates on machine hours and that Assembly should base its overhead rate on direct labor hours. Janine has been asked to prepare bids for two jobs with…
Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiner's master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employer's share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company's union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 6,600 glare filters in inventory on December 31 of the current year, and has a policy of carrying 35 percent of the following month's projected sales in inventory. Information on the first four months of the coming year is as follows: January February March April Estimated unit sales 37,200 35,400 40,000 40,000 Sales price per unit $80 $80 $75 $75 Direct labor…
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 $16.50q Indirect labor $4,100 + $1.60q Utilities $5,100 + $0.70q Supplies $1,200 + $0.40q Equipment depreciation $18,000 + $2.50q Factory rent $8,500 Property taxes $3,000 Factory administration $13,500 + $0.80q 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 $ 70,920 Indirect labor $ 10,320 Utilities $ 8,570 Supplies $ 3,170 Equipment depreciation $ 28,500 Factory rent $ 8,900 Property taxes $ 3,000 Factory…