Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are preparedmonthly for esch deportment. The planning budget and flexible budget for the Production Department are based on the followingformulas, where q is the number of labor-hours worked in a month:Cost FormulasDirect laborIndirect laborUtiliticsSuppliesEquipment depreciationFactory rentРгopсrty tакеsFactory adninistration$15.88g$8, 280 + $1.68g$6,400 + $e.seg$1,180 + $e.48g$23,0ee + $3.78g$8,400$2,100$11,700 + $1.9egThe Production Department planned to work 8,000 lebor-hours in March; however, it octually worked 8,400 lobor-hours during themonth. Its actual costs incurred in March are listed below:Actual Cost Incurredin March$134,738$ 19,860$ 14,578$ 4,988$ 54, 88e$ 8,700$ 2,100$ 26,470Direct laborIndirect laborlitiesSuppliesEquipment depreciationFactory rentProperty taxesFactory administrationRequired: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 fiexible budget performance report for March, including both the spending and sctivityvariances.Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Prepare the Production Department's planning budget for the month.Packaging Solutions CorporationProduction Department Planning BudgetFor the Month Ended March 31Direct laborIndirect laborUtilitiesSuppliesEquipment depreciationFactory rentProperty taxesFactory administrationTotal expense< Required 1Required 2 >

Flexible budget can be Rearranged as per activity to be achieved. It provides comparative results…

Answered: o work 8.000 labor-hours in March;…

Business

Accounting

o work 8.000 labor-hours in March; however ch are listed below: tual Cost Incurred in March $134,730 $ 19,860

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 11E: Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in...

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Method of Least Squares, Predicting Cost for Different Time Periods from the One Used to Develop a Cost Formula Refer to the information for Farnsworth Company on the previous page. However, assume that Tracy has used the method of least squares on the receiving data and has gotten the following results: Required: 1. Using the results from the method of least squares, prepare a cost formula for the receiving activity. 2. Using the formula from Requirement 1, what is the predicted cost of receiving for a month in which 1,450 receiving orders are processed? (Note: Round your answer to the nearest dollar.) 3. Prepare a cost formula for the receiving activity for a quarter. Based on this formula, what is the predicted cost of receiving for a quarter in which 4,650 receiving orders are anticipated? Prepare a cost formula for the receiving activity for a year. Based on this formula, what is the predicted cost of receiving for a year in which 18,000 receiving orders are anticipated?
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Scattergraph, High-Low Method, and Predicting Cost for a Different Time Period from the One Used to Develop a Cost Formula Refer to the information for Farnsworth Company on the previous page. Required: 1. Prepare a scattergraph based on the 10 months of data. Does the relationship appear to be linear? 2. Using the high-low method, prepare a cost formula for the receiving activity. Using this formula, what is the predicted cost of receiving for a month in which 1,450 receiving orders are processed? 3. Prepare a cost formula for the receiving activity for a quarter. Based on this formula, what is the predicted cost of receiving for a quarter in which 4,650 receiving orders are anticipated? Prepare a cost formula for the receiving activity for a year. Based on this formula, what is the predicted cost of receiving for a year in which 18,000 receiving orders are anticipated? Use the following information for Problems 3-60 and 3-61: Farnsworth Company has gathered data on its overhead activities and associated costs for the past 10 months. Tracy Heppler, a member of the controllers department, has convinced management that overhead costs can be better estimated and controlled if the fixed and variable components of each overhead activity are known. One such activity is receiving raw materials (unloading incoming goods, counting goods, and inspecting goods), which she believes is driven by the number of receiving orders. Ten months of data have been gathered for the receiving activity and are as follows:
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Service Department Charges and Activity Bases Middler Corporation, a manufacturer of electronics and communications systems, uses a service department charge system to charge profit centers with Computing and Communications Services (CCS) service department costs. The following table identifies an abbreviated list of service categories and activity bases used by the CCS department. The table also includes some assumed cost and activity base quantity information for each service for October. CCS ServiceCategory Activity Base Budgeted Cost Budgeted ActivityBase Quantity Help desk Number of calls $133,760 3,200 Network center Number of devices monitored 748,250 10,250 Electronic mail Number of user accounts 70,950 6,450 Handheld technology support Number of handheld devices issued 168,960 9,600 One of the profit centers for Middler Corporation is the Communication Systems (COMM) sector. Assume the following information for the COMM sector: The sector has…