Answer please

Required:

1. Prepare the Production Departments planning budget for the month.

2. Prepare the Production Departments flexible budget for the month.

3. Calculate the spending variances for all expense items.

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: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Direct labor Indirect labor Utilities Supplies Equipment depreciation Cost Formulas 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: Factory rent Property taxes Factory administration $16.509 $4,500+ $1.70g $5,100+ $0.70q $1,500 $0.409 $18,100 $2.60g $8,300 $2,700 $13,100+ $0.80g Actual Cost Incurred in March $ 65,970 $ 10,650 $ 8,360 $ 3,350 $ 28,240 $ 8,700 $ 2,700 $ 15,610 Required 1 Required 2 Required 3 Prepare the Production Department's planning budget for the month. Packaging Solutions Corporation Production Department Planning Budget For the Month Ended March 31 Budgeted labor-hours Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense 4,100 S 67,650 11,470 7,970 3,140 28,760 8,300 2,700 16,380 $ 146,370 Required 1 Required 2 Required 3 Prepare the Production Department's flexible budget for the month. Packaging Solutions Corporation Production Department Flexible Budget For the Month Ended March 31 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense $ 0 Calculate the spending variances for all expense items. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Packaging Solutions Corporation Spending Variances For the Month Ended March 31 Actual Results Labor-hours Direct labor ndirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense 3,900 $ 65,970 10,650 8,360 3,350 28,240 8,700 2,700 15,610 $ 143,580 Spending Variances U F U U None