Packaging Solutions Corporation manufactures and sells a wide variety of packagi

Question

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: The actual costs incurred in March in the Production Department are listed below: The company actually worked 9,500 labor-hours in March. Prepare the Production Department's flexible budget for the month. (Input all amounts as positive values. Omit the "$" sign in your response.)

Explanation / Answer

Packaging Solutions Corporation
Production Department Flexible Budget
For the Month Ended march 31
________________________________________________
Direct labor     $13.80 x 9,500                       $131,100
Indirect labor   $7,400 + ($1.50 x 9,500)          $21,600
Utilities           $8,100 + ($0.70 x 9,500)          $14,750
Supplies              $900 + ($0.40 x 9,500)           $4,700
Equip.Dep.      $22,500 + ($1.90 x 9,500)        $40,550
Factory Rent                                                   $7,300
Property taxes                                                $2,000
Factory admin. $11,350 + ($1.70 x 9,500)     $27,500
                                                                _________
Total expenses                                         $249,500
                                                               ==========

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