Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Its Production Department$$s planning budget and flexible budget are based on the following formulas, where q is the number of labor$-$hours worked in a month:

Cost Formulas

Direct labor $$16\mathrm{.}40$q

Indirect labor $$4,500+$ $$1\mathrm{.}70$q

Utilities $$5,300+$ $$0\mathrm{.}30$q

Supplies $$1,300+$ $$0\mathrm{.}30$q

Equipment depreciation $$18,600+$ $$3\mathrm{.}00$q

Factory rent $$8,100$

Property taxes $$3,000$

Factory administration $$13,400+$ $$0\mathrm{.}80$q

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

Direct labor $ $65,560$

Indirect labor $ $10,650$

Utilities $ $6,920$

Supplies $ $2,740$

Equipment depreciation $ $30,300$

Factory rent $ $8,500$

Property taxes $ $3,000$

Factory administration $ $15,910$

Required:

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.

Answer rating: 100% (QA)

To solve this problem we need to follow these steps 1 Prepare the Production Departments planning budget for the month 2 Prepare the Production Depart... View the full answer