1 | |||||||
Planning Budget | |||||||
Budgeted labor hours | 4200 | ||||||
Direct labor | 68040 | =4200*16.2 | |||||
Indirect labor | 10900 | =4600+(4200*1.5) | |||||
Utilities | 7500 | =5400+(4200*0.5) | |||||
Supplies | 2460 | =1200+(4200*0.3) | |||||
Equipment Depreciation | 30060 | =18300+(4200*2.8) | |||||
Factory rent | 8300 | ||||||
Property taxes | 2700 | ||||||
Factory administration | 16760 | =13400+(4200*0.8) | |||||
Total expenses | 146720 | ||||||
2 | |||||||
Flexible Budget | |||||||
Actual labor hours | 4000 | ||||||
Direct labor | 64800 | =4000*16.2 | |||||
Indirect labor | 10600 | =4600+(4000*1.5) | |||||
Utilities | 7400 | =5400+(4000*0.5) | |||||
Supplies | 2400 | =1200+(4000*0.3) | |||||
Equipment Depreciation | 29500 | =18300+(4000*2.8) | |||||
Factory rent | 8300 | ||||||
Property taxes | 2700 | ||||||
Factory administration | 16600 | =13400+(4000*0.8) | |||||
Total expenses | 142300 | ||||||
3 | |||||||
Actual | Spending variance | Flexible budget | Activity variance | Planning budget | |||
Labor hours | 4000 | 4000 | 4200 | ||||
Direct labor | 66360 | 1560 | U | 64800 | 3240 | F | 68040 |
Indirect labor | 10080 | 520 | F | 10600 | 300 | F | 10900 |
Utilities | 7890 | 490 | U | 7400 | 100 | F | 7500 |
Supplies | 2670 | 270 | U | 2400 | 60 | F | 2460 |
Equipment Depreciation | 29500 | 0 | None | 29500 | 560 | F | 30060 |
Factory rent | 8700 | 400 | U | 8300 | 0 | None | 8300 |
Property taxes | 2700 | 0 | None | 2700 | 0 | None | 2700 |
Factory administration | 15990 | 610 | F | 16600 | 160 | F | 16760 |
Total expenses | 143890 | 1590 | U | 142300 | 4420 | F | 146720 |
Exercise 9-15 Flexible Budget Performance Report in a Cost Center (LO9-1, LO9-2, LO9-3, LO9-4] Packaging Solutions Corp...
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 q is the number of labor-hours worked in a month Cost Formulas $15.80 $8,200 $1.60q $6,400+$0.80q $1,100 +$0.404 $23,e00 +$3.78q $8,400 $2,100 $11,700 $1.90q Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory...
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: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Cost Formulas $16.309 $4,800 + $2.009 $5,400 + $0.809 $1,700 + $0.209 $18,400 + $2.609 $8,100 $2,700 $13,500 +...
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 $16.20q Indirect labor $4,400 + $1.40q Utilities $5,000 + $0.50q Supplies $1,600 + $0.30q Equipment depreciation $18,700 + $2.80q Factory rent $8,300 Property taxes $2,700 Factory administration $13,000 +...
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: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Cost Formulas $16.209 $4,700 + $2.109 $5,200 + $0.709 $1,800 + $0.309 $18,200 + $2.809 $ 8,500 $2,500 $13,300...
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 $16.50q $4,600 $1.50q $5,200 $0.40q $1,500 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration $0.40q $18,600 $2.70q $8,500 $2,700 $13,100 $0.90q The Production Department planned...
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 $16.50q Indirect labor $4,600 + $2.00q Utilities $5,700 + $0.60q Supplies $1,600 + $0.20q Equipment depreciation $18,700 + $3.00q Factory rent $8,600 Property taxes $3,000 Factory administration $13,400 +...
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 $16.109 $4,400 + $1.809 $5,700 + $0.709 $1,600 + $0.309 $18, 200 + $2.500 $8,500 $2.700 $13,300 +...
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: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Cost Formulas $16.609 $4,000 + $1.509 $5,300 + $0.909 $1,600 + $0.209 $18, 100 + $ 2.609 $8,300 $2,500...
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: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Cost Formulas $16.409 $4,700 + $2.009 $5,600 + $0.609 $1,600 + $0.309 $18, 100 + $ 2.809 $8,200 $2,600...
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: 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...