Packaging Solutions Corporation manufactures and sells a wid

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. P monthly for each department. The planning budget and flexible budget for the formulas, where q is the number of labor-hours worked in a month eports are prepared Production Department are based on the following erformance r st Formulas Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration $16.38q $4,580+ $1.689 $5,300 + $8.489 $1,780 38.28q $18,508$3.18q $8,080 $2,908 $13,380 $0.78q The Production Department planned to work 4,500 labor-hours in March; however, it month. Its actual costs incurred in March are listed below actually worked 4 300 labor-hours during the Actual Cost Incurred in Harch 71,676 s 18,880 7,49e Direct labor Indirect Labor Utilities Supplies Equipnent depreciation Factory rent Property taxes Factory administration 5 2,81 31,836 8,408 $ 2,988 5 15,688 Prey 1 of 4 Next> ae Connect-Google Ch.M McAfee Security ScanAVG AntiVirus

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Planning budget Budgeted labor hours 4500 Direct labor 73350 =4500*16.3 Indirect labor 11700 =4500+(4500*1.6) Utilities 7100 =5300+(4500*0.4) Supplies 2600 =1700+(4500*0.2) Equipment depreciation 32450 =18500+(4500*3.1) Factory rent 8000 Property taxes 2900 Factory administration 16450 =13300+(4500*0.7) Total expense 154550 Flexible budget Budgeted labor hours 4300 Direct labor 70090 =4300*16.3 Indirect labor 11380 =4500+(4300*1.6) Utilities 7020 =5300+(4300*0.4) Supplies 2560 =1700+(4300*0.2) Equipment depreciation 31830 =18500+(4300*3.1) Factory rent 8000 Property taxes 2900 Factory administration 16310 =13300+(4300*0.7) Total expense 150090 Spending variance Activity variance Direct labor 1580 U 3260 F Indirect labor 500 F 320 F Utilities 470 U 80 F Supplies 250 U 40 F Equipment depreciation 0 None 620 F Factory rent 400 U 0 None Property taxes 0 None 0 None Factory administration 630 F 140 F Total expense 1570 U 4460 F