iPad 17% I 11:25 PM ezto.mheducation.com value 7.00 points Packaging Solutions C
ID: 2564184 • Letter: I
Question
iPad 17% I 11:25 PM ezto.mheducation.com value 7.00 points 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 $16.50q $4,500+ $1.60q $5,500+$ 0.40q $1,800 0.10q $18,400 $ 2.80q $8,300 $3,000 $13,100+ 0.60q The actual costs incurred in March in the Production Department are listed below Actual Cost Incurred in Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration March $70,920 S 10,720 S 7.650 $ 2,450 S 30.160 $ 8,700 $ 3,000 s 14,970 Required 1. The company had budgeted for an activity level of 4,400 labor-hours in March. Complete the Production Department's planning budget for the month. Packaging Solutions Corporation Production Department Planning Budget For the Month Ended March 31 Direct labor Indirect labor Utilities Supplies Factory rent Property taxes Factory administration Total expense 2. The company actually worked 4,200 labor-hours in March. Complete 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 UtilitiesExplanation / Answer
1.Planning budget :
2 Flexible budget :
3 spending variance
Direct labour 72600 Indirect labour 11540 Utilities 7260 Supplies 2240 Equipment depreciation 30720 Factory rent 8300 Property Taxes 3000 Factory administration 15740 Total expenses 151400Related Questions
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