Triway Packaging 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 direct labor-hours worked in a month:

Direct labor . . . . . . . . . . . . . . . . . . . . . $16.30q

Indirect labor. . . . . . . . . . . . . . . . . . . .$4,300 + $1.80q

Utilities . . . . . . . . . . . . . . . . . . . . . . . . $5,600 + $0.70q

Supplies . . . . . . . . . . . . . . . . . . . . . . .$1,400 + $0.30q

Equipment depreciation . . . . . . . . . . . $18,600 + $2.80q

Factory rent . . . . . . . . . . . . . . . . . . . . $8,300

Property taxes . . . . . . . . . . . . . . . . . . $2,800

Factory administration . . . . . . . . . . . . $13,400 + $0.90q

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

Actual Cost Incurred

in November

Direct labor . . . . . . . . . . . . . . . . . . . . .$63,520

Indirect labor. . . . . . . . . . . . . . . . . . . .$10,680

Utilities . . . . . . . . . . . . . . . . . . . . . . . . . $8,790

Supplies . . . . . . . . . . . . . . . . . . . . . . .. $2,810

Equipment depreciation . . . . . . . . . . . . $29,240

Factory rent . . . . . . . . . . . . . . . . . . . .. $8,700

Property taxes . . . . . . . . . . . . . . . . . .. $2,800

Factory administration . . . . . . . . . . . . . $16,230



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