20 1 points Exercise 9-16 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 $16.40q $4,500 + $1.50g Direct labor eBook Indirect labor Utilities $5,700 + $0.80g Supplies $1,600 + $0.40g Equipment depreciation $18,500 + $2.80g Print Property taxes Factory administration Factory rent $8,400 $2,900 $13,600 + $0.70g References The Production Department planned to work 4,400 labor-hours in March; however, it actually worked 4,200 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 $ 70,480 $ 10,280 $ 9,610 $ 3,570 $30,260 $ 8,800 $ 2,900 $ 15,910 Required: 1. Prepare the Production Department's planning budget for the month. 2. Prepare the Production Department's flexible budget for the month. 3. Calculate the spending variances for all expense items. CH