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... $15.80q
Indirect labor... $8,200+ 1.60q
Utilities... 6,400+ 0.80q
Supplies... 1,100+ 0.40q
Equipment depreciation... 23,000+ 3.70q
Factory rent... 8,400
Property taxes... 2,100
Factory administration... 11,700+ 1.90q

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

Actual cost incurred in March
Direct labor... 134,730
Indirect labor... 19,860
Utilities... 14,570
Supplies... 4,980
Equipment depreciation... 54,080
Factory Rent... 8,700
Property taxes... 2,100
Factory Administration... 26,470

MUST HAVE Comparison TABLE

1.
The company had budgeted for an activity level of 8,000 labor hours in March. Prepare the production Department's planning budget for the month

2.
The company actually worked 8,400 labor hours in March. Prepare the Production Department's flexible budget for the month

3.
Prepare the Production Departments flexible budget performance reports for March, including both the activity and spending variances.

4.
What aspects of the flexible budget performance report should be brought to managements attention? Explain

Here is your assignment and working on other one and try to give u in time

Attached Files

jaytleo flexedbudget.xlsx.xls (23.0 KB, 441 views)