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

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 $q$ is the number of labor$-$hours worked in a month:

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:

Required:

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

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

Calculate the spending variances for all expense items.

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

Prepare the Production Department's planning budget for the month. Required $1$

Required $2$

Required $3$

Prepare the Production Department's flexible bud

$\begin{array}{cc}\text{P}\text{a}\text{c}\text{k}\text{a}\text{g}\text{i}\text{n}\text{g}\text{S}\text{o}\text{l}\text{u}\text{t}\text{i}\text{o}\text{n}\text{s}\text{C}\text{o}\text{r}\text{p}\text{o}\text{r}\text{a}\text{t}\text{i}\text{o}\text{n}& ?\\ \text{P}\text{r}\text{o}\text{d}\text{u}\text{c}\text{t}\text{i}\text{o}\text{n}\text{D}\text{e}\text{p}\text{a}\text{r}\text{t}\text{m}\text{e}\text{n}\text{t}\text{F}\text{l}\text{e}\text{x}\text{i}\text{b}\text{l}\text{e}\text{B}\text{u}\text{d}\text{g}\text{e}\text{t}& ?\\ ?& ?\\ \text{D}\text{i}\text{r}\text{e}\text{c}\text{t}\text{l}\text{a}\text{b}\text{o}\text{r}& ?\\ \text{I}\text{n}\text{d}\text{i}\text{r}\text{e}\text{c}\text{t}\text{l}\text{a}\text{b}\text{o}\text{r}& ?\\ \text{U}\text{t}\text{i}\text{l}\text{i}\text{t}\text{i}\text{e}\text{s}& ?\\ \text{S}\text{u}\text{p}\text{p}\text{l}\text{i}\text{e}\text{s}& ?\\ \text{E}\text{q}\text{u}\text{i}\text{p}\text{m}\text{e}\text{n}\text{t}\text{d}\text{e}\text{p}\text{r}\text{e}\text{c}\text{i}\text{a}\text{t}\text{i}\text{o}\text{n}& ?\\ \text{F}\text{a}\text{c}\text{t}\text{o}\text{r}\text{y}\text{r}\text{e}\text{n}\text{t}& ?\\ \text{P}\text{r}\text{o}\text{p}\text{e}\text{r}\text{t}\text{y}\text{t}\text{a}\text{x}\text{e}\text{s}& ?\\ \text{F}\text{a}\text{c}\text{t}\text{o}\text{r}\text{y}\text{a}\text{d}\text{m}\text{i}\text{n}\text{i}\text{s}\text{t}\text{r}\text{a}\text{t}\text{i}\text{o}\text{n}& ?\\ \text{T}\text{o}\text{t}\text{a}\text{l}\text{e}\text{x}\text{p}\text{e}\text{n}\text{s}\text{e}& ?\end{array}$ Required $3$

Calculate the spending variances for all expense items. $($Indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for no effect $($i$.$e$.,$ zero variance$).$ Input all amounts as positive values.$)$

$\backslash$table$[[$Packaging Solutions Corporation$],[$Spending Variances$],[$For the Month Ended March $31],[,\backslash$table$[[$Actual$],[$Results$]],$Spending Variances,$\backslash$table$[[$Flexible$],[$Budget$]]],[$Labor$-$hours,$8,400,,],[$Direct labor,$$,134,730,,],[$Indirect labor,$19,860,,],[$Utilities$,14,570,,],[$Supplies$,4,980,,],[$Equipment depreciation,$54,080,,],[$Factory rent,$8,700,,],[$Property taxes,$2,100,,],[$Factory administration,$26,470,,],[$Total expense,$$265,490,,]]$