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 is the number of labor-hours worked in a month Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Cost Formulas $16.189 $4,200 + $1.809 $5,400 + $0.889 $1,700 + $0.389 $18,300 + $3.000 $8,200 $2,600 $13,300 + $0.889 The Production Department planned to work 4.400 labor-hours in March; however, it actually worked 4 200 labor hours during the un costs incurred in March are listed below.

Answer 1

Solution 1:

Packaging Solutions Corporation
Production Department Planning Budget
For the month ended March 31
Particulars	Details	Amount
Direct labor hours		4400
Direct labor	4400*$16.10	$70,840.00
Indirect labor	$4,200 + $1.80*4400	$12,120.00
Utilities	$5,400 + $0.80*4400	$8,920.00
Supplies	1,700 + $0.30*4400	$3,020.00
Equipment Depreciation	$18,300 + $3*4400	$31,500.00
Factory Rent		$8,200.00
Property Taxes		$2,600.00
Factory Administration	$13,300 + $0.80*4400	$16,820.00
Total Expense		$154,020.00

Solution 2:

Packaging Solutions Corporation
Production Department Flexible Budget
For the month ended March 31
Particulars	Details	Amount
Direct labor hours		4200
Direct labor	4200*$16.10	$67,620.00
Indirect labor	$4,200 + $1.80*4200	$11,760.00
Utilities	$5,400 + $0.80*4200	$8,760.00
Supplies	1,700 + $0.30*4200	$2,960.00
Equipment Depreciation	$18,300 + $3*4200	$30,900.00
Factory Rent		$8,200.00
Property Taxes		$2,600.00
Factory Administration	$13,300 + $0.80*4200	$16,660.00
Total Expense		$149,460.00

Solution 3:

Packagining Solution Corporation
Flexible Budget Performance Report
For the month ended March 31
Particulars	Actual results	Flexible Budget Variance		Flexible Budget	Activity Variances		Planning Budget
Nos of units	4200			4200			4400
Direct labor	$69,160.00	$1,540.00	U	$67,620.00	$3,220.00	F	$70,840.00
Indirect labor	$11,300.00	$460.00	F	$11,760.00	$360.00	F	$12,120.00
Utilities	$9,310.00	$550.00	U	$8,760.00	$160.00	F	$8,920.00
Supplies	$3,230.00	$270.00	U	$2,960.00	$60.00	F	$3,020.00
Equipment Depreciation	$30,900.00	$0.00	None	$30,900.00	$600.00	F	$31,500.00
Factory Rent	$8,600.00	$400.00	U	$8,200.00	$0.00	None	$8,200.00
Property Taxes	$2,600.00	$0.00	None	$2,600.00	$0.00	None	$2,600.00
Factory Administration	$16,050.00	$610.00	F	$16,660.00	$160.00	F	$16,820.00
Total expenses	$151,150.00	$1,690.00	U	$149,460.00	$4,560.00	F	$154,020.00