Exercise $9-16($Static$)$ Flexible Budgets in a Cost Center $[$LO$9-1,$ LO$9-2]$

Packaging Solutions Corporation manufactures and sells a wide varlety 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:

Cost Formulas

$$15\mathrm{.}809$

Direct labor

Indirect labor

utilities $$8,200+$$$1\mathrm{.}600$

Supplies $$6,400+$$$0\mathrm{.}809$

Equipment depreciation $$1,100+$$$0\mathrm{.}489$

$$23,e00+$$$3\mathrm{.}789$

$$8,400$

Factory administration $,$$$11,700+$$$1\mathrm{.}969$

The Production Department planned to work $8,000$ labor$-$hours In March; however, It actually worked $8,400$ labor$-$hours during the

month. Its actual costs incurred In March are listed below:

Actual cost

Incurred in

March

$$134,730$

$$19,860$

$$14,576$

$$4,980$

$$54,090$

$$8,700$

$$2,100$

$$26,470$

Direct labor

Indirect labor

utilities

Supplies

Equipment depreciation

Factory rent

Property taxes

Factory administration

Required:

Prepare the Production Department's planning budget for the month.

Prepare the Production Department's flexible budget for the month.

Calculate the spending varlances for all expense items.

Complete this question by entering your answers in the tabs below.

Required $3$

Prepare the Production Department's flexible budget for the month.