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: $16.40 Direct labor 4,500 2.00a Indirect labor Utilities 5,400 0.90 Supplies 1,500 0.20a Equipment depreciation $18,200 2.70q $8,500 Factory rent Property taxes $2,600 $13,200 0.70 Factory administration The actual costs incurred in March in the Production Department are listed below: Actual Cost Incurred in March 70,480 Direct labor Indirect labor 12,480 9,750 Utilities Supplies 2,590 29,540 Equipment depreciation 8,900 Factory rent Property taxes 2,600 15,510 Factory administration Show transcribed image text 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: $16.40 Direct labor 4,500 2.00a Indirect labor Utilities 5,400 0.90 Supplies 1,500 0.20a Equipment depreciation $18,200 2.70q $8,500 Factory rent Property taxes $2,600 $13,200 0.70 Factory administration The actual costs incurred in March in the Production Department are listed below: Actual Cost Incurred in March 70,480 Direct labor Indirect labor 12,480 9,750 Utilities Supplies 2,590 29,540 Equipment depreciation 8,900 Factory rent Property taxes 2,600 15,510 Factory administration
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