ackaging 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 ormulas, 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 Direct labor Indirect labor Utilities Supplies. Equipment depreciation Factory rent Property taxes Factory administration $16.10q $4,600+ $1.70q $5,000+ $0.50q $1,700+ $0.30q $18,700+ $2.809 $8,300 $3,000 $13,400+ $0.60q 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: Actual Cost Incurred in March $ 64,330 $ 10,750 $ 7,440 $ 3,140 $ 29,620 $8,700 $3,000 $ 15,090 Required: 1. Prepare the Production Department's planning budget for the month. 2 Prepare the Production Department's flexible budget for the month

ackaging 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 ormulas, 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 Direct labor Indirect labor Utilities Supplies. Equipment depreciation Factory rent Property taxes Factory administration $16.10q $4,600+ $1.70q $5,000+ $0.50q $1,700+ $0.30q $18,700+ $2.809 $8,300 $3,000 $13,400+ $0.60q 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: Actual Cost Incurred in March $ 64,330 $ 10,750 $ 7,440 $ 3,140 $ 29,620 $8,700 $3,000 $ 15,090 Required: 1. Prepare the Production Department's planning budget for the month. 2 Prepare the Production Department's flexible budget for the month

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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