Answer:
1) Planning Budget
Packaging Solutions Corporation
Production Department Planning Budget
For the Month Ended March 31
Direct labor 66010
Indirect labor 10240
Utilities 8270
Supplies 2520
Equipment depreciation 29890
Factory rent 8400
Property taxes 2600
Factory administration 16380
Total expense 144310
2) Flexible budget :
Packaging Solutions Corporation
Production Department Flexible Budget
For the Month Ended March 31
Direct labor 62790
Indirect labor 9960
Utilities 8130
Supplies 2480
Equipment depreciation 29310
Factory rent 8400
Property taxes 2600
<u>Factory administration 16220
</u>
<u>Total expense 139890
</u>
3.Packaging Solutions Corporation
Production Department Flexible Budget Performance Report
For the Month Ended March 31
Spending Variances
Direct labor 1540 U
Indirect labor 540 F
Utilities 530 U
Supplies 250 U
Equipment depreciation None
Factory rent 400 U
Property taxes None
<u>Factory administration 610 F
</u>
<u>Total expense 1570 U</u>
Explanation:
Based on the information given from the question, the planning budget will look like the following
1) Planning Budget
Packaging Solutions Corporation
Production Department Planning Budget
For the Month Ended March 31
Direct labor 66010
Indirect labor 10240
Utilities 8270
Supplies 2520
Equipment depreciation 29890
Factory rent 8400
Property taxes 2600
Factory administration 16380
Total expense 144310
2) Flexible budget :
Packaging Solutions Corporation
Production Department Flexible Budget
For the Month Ended March 31
Direct labor 62790
Indirect labor 9960
Utilities 8130
Supplies 2480
Equipment depreciation 29310
Factory rent 8400
Property taxes 2600
<u>Factory administration 16220
</u>
<u>Total expense 139890
</u>
3.Packaging Solutions Corporation
Production Department Flexible Budget Performance Report
For the Month Ended March 31
Spending Variances
Direct labor 1540 U
Indirect labor 540 F
Utilities 530 U
Supplies 250 U
Equipment depreciation None
Factory rent 400 U
Property taxes None
<u>Factory administration 610 F
</u>
<u>Total expense 1570 U</u>
