Question

I only need a help with the one which is shown wrong. Thank you.

Exercise 9-16 Flexible Budgets in a Cost Center (LO9-1, LO9-2] 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 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 $15.809 $8,200 + $1.609 $6,400 + $0.889 $1,100 + $0.489 $23,eee + $3.709 $8,400 $2,100 $11,700 + $1.909 The Production Department planned to work 8,000 labor hours in March; however, it actually worked 8.400 labor hours during month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March $ 134,730 $ 19,860 Direct labor Tadic+ labor

Answer 1

Packaging solutions Corporation Spending variances For the month ended March 31 Actual Flexible results Spending variances budget 8400 8400 Labour hours $ Direct labour Indirect labour Utilities Supplies Equipment depreciation Factory Rent Property taxes Fatory administration Total expense 134,730 19,860 14,570 4,980 54,080 8,700 2,100 26,470 265,490 $ 2,010 U $ (1,780) F $ 1,450 U $ 520 U $ - None S 300 U $ - None $ (1,190 F S 1,310 U $132,720 (S 15.80 * 8400 hours) $ 21,640 $ 13,120 $ 4,460 $ 54,080 $ 8,400 (S 8400 - S 8700 = $ 300) $ 2,100 $ 27,660 S264,180 $ S