xercise 9-16 (Algo) Flexible Budgets in a Cost Center [LO9-1, LO9-2] ackaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared onthly for each department. The planning budget and flexible budget for the Production Department are based on the following rmulas, where q is the number of labor-hours worked in a month: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration ne Production Department planned to work 4,100 labor-hours in March; however, it actually worked 3,900 labor-hours during the onth. Its actual costs incurred in March are listed below: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Cost Formulas $16.40q $4,400 + $1.709 $5,100+ $0.409 $1,800 + $0.109 $18,500 + $2.50q $8,400 $2,500 $13,200 + $0.909 Actual Cost Incurred in March $ 65,560 $ 10,550 $ 7,130 $ 2,420 Required 1 Required 2 Required 3 Direct labor ndirect labor Jtilities Supplies Equipment depreciation Factory rent Property taxes Factory administration otal expense $ 28,250 $ 8,800 equired: Prepare the Production Department's planning budget for the month. Prepare the Production Department's flexible budget for the month. Calculate the spending variances for all expense items. $ 2,500 $ 16,120 Complete this question by entering your answers in the tabs below. Prepare the Production Department's planning budget for the month. Packaging Solutions Corporation Production Department Planning Budget For the Month Ended March 31 0
xercise 9-16 (Algo) Flexible Budgets in a Cost Center [LO9-1, LO9-2] ackaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared onthly for each department. The planning budget and flexible budget for the Production Department are based on the following rmulas, where q is the number of labor-hours worked in a month: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration ne Production Department planned to work 4,100 labor-hours in March; however, it actually worked 3,900 labor-hours during the onth. Its actual costs incurred in March are listed below: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Cost Formulas $16.40q $4,400 + $1.709 $5,100+ $0.409 $1,800 + $0.109 $18,500 + $2.50q $8,400 $2,500 $13,200 + $0.909 Actual Cost Incurred in March $ 65,560 $ 10,550 $ 7,130 $ 2,420 Required 1 Required 2 Required 3 Direct labor ndirect labor Jtilities Supplies Equipment depreciation Factory rent Property taxes Factory administration otal expense $ 28,250 $ 8,800 equired: Prepare the Production Department's planning budget for the month. Prepare the Production Department's flexible budget for the month. Calculate the spending variances for all expense items. $ 2,500 $ 16,120 Complete this question by entering your answers in the tabs below. Prepare the Production Department's planning budget for the month. Packaging Solutions Corporation Production Department Planning Budget For the Month Ended March 31 0
Chapter1: Financial Statements And Business Decisions
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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.
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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.
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![Exercise 9-16 (Algo) Flexible Budgets in a Cost Center [LO9-1, LO9-2]
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:
Direct labor
Indirect labor
Utilities
Supplies
Equipment depreciation
Factory rent
Property taxes
Factory administration
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
Equipment depreciation
Factory rent
Property taxes
Factory administration
Cost Formulas
$16.409
$4,400+ $1.709
$5,100+ $0.409
$1,800+ $0.109
$18,500 + $2.509
$8,400
$2,500
$13,200+ $0.909
Actual Cost
Incurred in
March
Required:
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 variances for all expense items.
Required 1 Required 2 Required 3
Direct labor
Indirect labor
Utilities
Supplies
Equipment depreciation
Complete this question by entering your answers in the tabs below.
Factory rent
Property taxes
Factory administration
Total expense
$ 65,560
$ 10,550
$7,130
$
$ 2,420
$ 28,250
$ 8,800
$ 2,500
$ 16,120
Prepare the Production Department's planning budget for the month.
Packaging Solutions Corporation
Production Department Planning Budget
For the Month Ended March 31
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fae97e129-1b20-4a94-85d7-6595c546c1d3%2F0bca300b-01fd-4ee6-9253-a21cec7b02f6%2Fsqfc69g_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 9-16 (Algo) Flexible Budgets in a Cost Center [LO9-1, LO9-2]
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:
Direct labor
Indirect labor
Utilities
Supplies
Equipment depreciation
Factory rent
Property taxes
Factory administration
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
Equipment depreciation
Factory rent
Property taxes
Factory administration
Cost Formulas
$16.409
$4,400+ $1.709
$5,100+ $0.409
$1,800+ $0.109
$18,500 + $2.509
$8,400
$2,500
$13,200+ $0.909
Actual Cost
Incurred in
March
Required:
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 variances for all expense items.
Required 1 Required 2 Required 3
Direct labor
Indirect labor
Utilities
Supplies
Equipment depreciation
Complete this question by entering your answers in the tabs below.
Factory rent
Property taxes
Factory administration
Total expense
$ 65,560
$ 10,550
$7,130
$
$ 2,420
$ 28,250
$ 8,800
$ 2,500
$ 16,120
Prepare the Production Department's planning budget for the month.
Packaging Solutions Corporation
Production Department Planning Budget
For the Month Ended March 31
0
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