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: 35 points eBook Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Cost Formulas $16.50g $4,400 + $1.500 $5,300 + $0.409 $1,700 + $0.30g $18,400 + $2.909 $8,200 $2,700 $13,600 + $0.900 Print References The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 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 $ 67,620 $ 9,880 $ 7,370 $ 3,170 $ 30,000 $ 8,600 $ 2,700 $ 16,610 2 Required 1 Required 2 Required 3 Prepare the Production Department's planning budget for the month. 35 points Packaging Solutions Corporation Production Department Planning Budget For the Month Ended March 31 eBook Print References Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense 2 Required 1 Required 2 Required 3 Prepare the Production Department's flexible budget for the month. 35 points Packaging Solutions Corporation Production Department Flexible Budget For the Month Ended March 31 eBook Print References Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense Required 1 Required 2 Required 3 Prepare the Production Department's flexible budget performance report for March, including both the spending and activity variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., z variance). Input all amounts as positive values.) ook Packaging Solutions Corporation Production Department Flexible Budget Performance Report For the Month Ended March 31 Actual Flexible Results Budget 4,000 Planning Budget rint rences Labor-hours Direct labor $ 67,620 Indirect labor 9,880 Utilities 7,370 3,170 30,000 8,600 Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense 2,700 16.610 $ 145,950