10 Exercise 9-16 (Algo) Flexible Budgets in a Cost Center [LO9-1, LO9-2] 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 $16.500 Indirect labor eBook Direct labor ferences Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration $4,200 +$1.90q $5,500 $0.800 $1,700 + $0.200 $18,700 $2.50 $8,400 $2,900 $13,100 $0.60 The Production Department planned to work 4,100 labor-hours in March; however, it actually worked 3,900 labor-hours during the month. Its actual costs incurred in March are listed below. Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Actual Cost Incurred in March $ 65,970 $11,170 $9,170 $ 2,730 $ 28,450 $ 1,800 $ 2,900 $14,790 Required: