Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are preparedmonthly for each department. The planning budget and flexible budget for the Production Department are based on the followingformulas, 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 + $0.80gDirect laborIndirect laborUtilitiesSuppliesEquipment depreciationFactory rentProperty taxesFactory adeinistrationThe Production Department planned to work 4,100 labor-hours in March; however, it actually worked 3,900 labor-hours during themonth. Its actual costs incurred in March are listed below:Direct laborIndirect laborUtilitiesSuppliesEquipnent depreciationFactory rentProperty taxesFactory administrationActual Cost Incurred in March$ 66,380$ 9,940$ 8,560$ 3,140$ 29,810$ 8,700$2,500$ 15,610Required:1. 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 varlances for all expense items.

Standards are set in advance, the actual performance is measured based on the standard set. In case…

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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Palladium Inc. produces a variety of household cleaning products. Palladium’s controller has developed standard costs for the following four overhead items: Overhead Item Total Fixed Cost Variable Rate per DirectLabor Hour Maintenance $ 86,000 $0.20 Power 0.45 Indirect labor 140,000 2.10 Rent 35,000 Next year, Palladium expects production to require 90,000 direct labor hours. Required: Question Content Area 1. Prepare an overhead budget for the expected level of direct labor hours for the coming year. Palladium Inc.Overhead BudgetFor the Coming Year Variable costs: Rate per Hour Activity Level 90,000 Hours blank Maintenance $fill in the blank ddf6cc027003019_1 $fill in the blank ddf6cc027003019_2 blank Power fill in the blank ddf6cc027003019_3 fill in the blank ddf6cc027003019_4 blank Indirect labor fill in the blank ddf6cc027003019_5 fill in the blank…
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Palladium Inc. produces a variety of household cleaning products. Palladium's controller has developed standard costs for the following four overhead items: Overhead Item Total Fixed Cost Variable Rate per Direct Labor Hour Maintenance $86,000 $0.20 Power $0.45 Indirect Labor $140,000 $2.10 Rent $35,000 Next year, Palladium expects production to require 88,000 direct labor hours. Prepare an overhead budget for the expected level of direct labor hours for the coming year.
Wildhorse Manufacturing has prepared the following monthly flexible manufacturing overhead budget for its Mixing Department: WILDHORSEMANUFACTURING Monthly Flexible Manufacturing Overhead Budget Mixing Department Activity level Direct labor hours 5,200 6,200 Variable costs Indirect materials $ 5,200 6.200 Indirect labor 26,000 31,000 Factory supplies 7,800 9,300 Total variable 39,000 46,500 Fixed costs Depreciation 22,200 22.200 Supervision 14,200 14,200 Property taxes 17,200 17,200 Total fixed 53,600 53,600 Total costs $ 92,600 $ 100,100 Prepare a flexible budget at the 7,200 direct labor hours of activity. (List variable costs before fixed costs.) WILDHORSEMANUFACTURING Monthly Flexible Manufacturing Overhead Budget Mixing Department Activity level Direct labor hours > > S S 7,200 SAMSUNG
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Ravine Ltd determines the price of jobs using time and material pricing. Budgeted information relating to this accounting period is as follows: Labour rate, including on-costs 60 Annual labour hours 15,000 Annual overhead costs: Material handling and storage 151,680 Other overhead costs 546,000 Annual cost of materials used 1,264,000 Ravine Ltd adds a mark-up of $20 per hour on time charges, while no mark-up is added onto material costs. Required: Calculate the price for a job that requires 300 labour hours and $180,000 material cost. What would be the price of the job if Ravine Ltd also added a 10% mark-up on all material charges?
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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 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…
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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 q is the number of labor-hours worked in a month: Cost Formulas Direct labor $15.80q Indirect labor $8,200 + $1.60q Utilities $6,400 + $0.80q Supplies $1,100 + $0.40q Equipment depreciation $23,000 + $3.70q Factory rent $8,400 Property taxes $2,100 Factory administration $11,700 + $1.90q The Production Department planned to work 8,000 labor-hours in March; however, it actually worked 8,400 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March Direct labor $ 134,730 Indirect labor $ 19,860 Utilities $ 14,570 Supplies $ 4,980 Equipment depreciation $ 54,080 Factory rent $ 8,700 Property taxes $ 2,100 Factory…
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows: Indirect labor Indirect materials Utilities Activity Level Depreciation Fixed overhead costs per month are Supervision $3,600, Depreciation $1,300, and Property Taxes $800. The company believes it will normally operate in a range of 7,100-11,000 direct labor hours per month. Direct Labor Hours Fixed Costs $1.20 Prepare a monthly manufacturing overhead flexible budget for 2020 for the expected range of activity, using increments of 1,300 direct labor hours. (List variable costs before fixed costs.) Indirect Labor Indirect Materials Property Taxes Supervision 0.70 Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs 0.20 LA MYERS COMPANY Monthly Manufacturing Overhead Flexible Budget For the Year 2020 LA tA tA

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