Triway packaging corporation manufactures and sells a wide

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Reference no: EM13483620

Triway Packaging 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 direct labor-hours worked in a month:


Direct labor				$	16.20	q
Indirect labor	$	4,700	+	$	2.10	q
Utilities	$	5,800	+	$	0.40	q
Supplies	$	1,600	+	$	0.40	q
Equipment depreciation	$	18,500	+	$	3.10	q
Factory rent				$	8,300
Property taxes				$	2,600
Factory administration	$	13,400	+	$	0.70	q

The actual costs incurred in November in the Production Department are listed below:

	Actual Cost Incurred in November
Direct labor	$	67,980
Indirect labor	$	12,910
Utilities	$	7,910
Supplies	$	3,530
Equipment depreciation	$	31,210
Factory rent	$	8,700
Property taxes	$	2,600
Factory administration	$	15,640

Required:
1.	The company had budgeted for an activity level of 4,300 labor-hours in November. Prepare the Production Department's planning budget for the month.

Triway Packaging Corporation Production Department Planning Budget For the Month Ended November 30
Direct labor	$
Indirect labor
Utilities
Supplies
Equipment depreciation
Factory rent
Property taxes
Factory administration

Total expense	$

2.	The company actually worked 4,100 labor-hours in November. Prepare the Production Department's flexible budget for the month.

Triway Packaging Corporation Production Department Flexible Budget For the Month Ended November 30
Direct labor	$
Indirect labor
Utilities
Supplies
Equipment depreciation
Factory rent
Property taxes
Factory administration

Total expense	$

3.	Calculate the spending variances for all expense items. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Triway Packaging Corporation Revenue and Spending Variances For the Month Ended November 30
	Flexible Budget	Actual Results	Revenue and Spending Variances
Direct labor	$	$	$
Indirect labor
Utilities
Supplies
Equipment depreciation
Factory rent
Property taxes
Factory administration

Total expense	$	$	$

Reference no: EM13483620

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