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Managerial Accounting for Packaging Solutions Corporation

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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 $14.80q
Indirect labor $7,300 + $1.40q
Utilities $8,200 + $0.70q
Supplies $1,000 + $0.20q
Equipment depreciation $22,500 + $3.10q
Factory rent $6,600
Property taxes $1,540
Factory administration $11,650 + $1.70q

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

Actual Cost
Incurred in March
Direct labor $123,730
Indirect labor $19,060
Utilities $16,370
Supplies $3,070
Equipment depreciation $51,330
Factory rent $8,100
Property taxes $1,540
Factory administration $20,570

Requirement 1:
The company had budgeted for an activity level of 10,000 labor-hours in March. Prepare the Production Department's planning budget for the month. (Input all amounts as positive values. Omit the "$" sign in your response.)
Packaging Solutions Corporation
Production Department Planning Budget
For the Month Ended March 31

Requirement 2:
The company actually worked 9,300 labor-hours in March. Prepare the Production Department's flexible budget for the month. (Input all amounts as positive values. Omit the "$" sign in your response.)
Packaging Solutions Corporation
Production Department Flexible Budget.

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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 14.8
Indirect labor 7,300 1.4
Utilities 8,200 0.7
Supplies 1,000 0.2
Equipment depreciation 22,500 3.1
Factory rent 6,600
Property taxes 1,540
Factory administration 11,650 ...

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