Exercise 9-14 (Algo) Flexible Budget Performance Report in a Cost Center [LO9-1, LO9-2, LO9-3, LO9-4] 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 qis 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 $16.409 $4,000+ $1.40q $5,300 + $0.30q $1,600 $0.10q $18,500 + $3.00q $8,200 $2,500 $13,600+ se.60g The Production Department planned to work 4.400 labor-hours In March; however, it actually worked 4,200 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 Total expense Actual Cost Incurred in March Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Required: 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. $ 70,480 $ 9,340 $ 7,010 $ 2,250 $ 31,100 $ 8,600 $ 2,500 $ 15,470 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the Production Department's planning budget for the month. Packaging Solutions Corporation Production Department Planning Budget For the Month Ended March 31 < Required 1 Required 2 >

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 1E: Budget performance reports for cost centers Partially completed budget performance reports for...

	Actual Cost Incurred in March
Direct labor	$ 70,480
Indirect labor	$ 9,340
Utilities	$ 7,010
Supplies	$ 2,250
Equipment depreciation	$ 31,100
Factory rent	$ 8,600
Property taxes	$ 2,500
Factory administration	$ 15,470

Prepare the Production Department’s planning budget for the month.
Prepare the Production Department’s flexible budget for the month.
Prepare the Production Department’s flexible budget performance report for March, including both the spending and activity variances.