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-h a month: Direct labor Indirect labor Utilities Supplies Cost Formulas $16.300 E Equipment depreciation Factory rent Property taxes Factory administration $4,300 +$1.500 $5,300 $0.400 $1,400 $0.300 $18,200-$2.700 $8,400 $2,600 $13,800+ $0 600 The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 labor-hours during the month. Its actual costs incurred in March are listed below. Direct labor Indirect labor Utilities Supplies Actual Cost Incurred in March $ 66,780 $ 9,780 $ 7,370 $ 2.870 ET Equipment depreciation Factory rent Property taxes Factory administration Required: $ 29,000 $ 8,800 $ 2,600 $ 15,550 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 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-h a month: Direct labor Indirect labor Utilities Supplies Cost Formulas $16.300 E Equipment depreciation Factory rent Property taxes Factory administration $4,300 +$1.500 $5,300 $0.400 $1,400 $0.300 $18,200-$2.700 $8,400 $2,600 $13,800+ $0 600 The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 labor-hours during the month. Its actual costs incurred in March are listed below. Direct labor Indirect labor Utilities Supplies Actual Cost Incurred in March $ 66,780 $ 9,780 $ 7,370 $ 2.870 ET Equipment depreciation Factory rent Property taxes Factory administration Required: $ 29,000 $ 8,800 $ 2,600 $ 15,550 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 Direct labor
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 20E: Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc.,...
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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.
Sales Budget and Selling
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.
Question
Transcribed Image Text: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
Cost Formulas
$16.30g
$4,300 +$1.50q
$5,300 + $0.40g
$1,400 + $0.30q
$18,200+ $2.70q
$8,400
$2,600
$13,800 + $0.60q
The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 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
Required:
Actual Cost Incurred in March
$ 66,780
$
9,780
$
7,370
2,870
$ 29,000
$ 8,800
$ 2,600
$ 15,550
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
Direct labor
Indirect labor
Utilities
Supplies
Equipment depreciation
Factory rent
Property taxes
Factory administration
Total expense
$
0
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