Solution-Prepare the production department''s flexible

Prepare the production department''s flexible budget

Assignment Help Accounting Basics

Reference no: EM133040078

Question - 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:

	Cost Formulas
Direct labor	$16.30q
Indirect labor	$4,400 + $1.90q
Utilities	$5,700 + $0.70q
Supplies	$1,400 + $0.20q
Equipment depreciation	$18,300 + $2.70q
Factory rent	$8,200
Property taxes	$2,700
Factory administration	$13,100 + $0.90q

The Production Department planned to work 4,200 labor-hours In March; however, It actually worked 4,000 labor-hours during the month. Its actual costs Incurred In March are listed below:

	Actual Cost Incurred in March
Direct labor	$66,780
Indirect labor	$11,560
Utilities	$9,030
Supplies	$2,450
Equipment depreciation	$29,100
Factory rent	$8,600
Property taxes	$2,700
Factory administration	$16,110

Required -

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

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

3. Calculate the spending variances for all expense Items.

Reference no: EM133040078

Questions Cloud

Social media influences the stock market : How social media influences the stock market?

Covid-our life and economy look like : Co-exist with COVID-19: How would Our Life and Economy Look Like?

Create skit to resolve the conflict using the concepts : Create a SKIT to resolve the conflict using the concepts and theories in our book. Could this problem have been avoided by Abdul? How?

Change management and creativity management : How should an organization overcome resistance to change? Explain at least five benefits of change management.

Prepare the production department''s flexible budget : The Production Department planned to work 4,200 labor-hours In March; Prepare the Production Department's flexible budget for the month

What is the fair value of biological assets on january : The entity has had problems during the year. Contaminated milk was sold to customers. What is the fair value of biological assets on January 1, 2020

Organize information in accounts under an accounting eqution : Mott can borrow up to $400,000 at any time over the course of the calendar year. Organize information in accounts under an accounting eqution

Identify three suppliers buyers in pharmaceutical industry : Identify three suppliers buyers in the pharmaceutical industry? What are three major barriers to entry for these new entrants?

Critical thinking case studies : It came to the attention of the Mr. Faisal Al Qarni, CEO of a Alqarni company (A small Jeddah based company) that there was a difficulty between two employees w

User Account

All Pages

Prepare the production department''s flexible budget

Reference no: EM133040078

Reference no: EM133040078

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT