Exercise 9-14 (Algo) Flexible Budget Performance Report in a Cost Center [LO9-1, LO9-2, LO9-3, LO9-4] 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 Cost Formulas $16.30q Indirect labor Utilities $4,600 + $1.70q $5,200 + $0.50q Supplies $1,300 + $0.209 Equipment depreciation $18,300 + $2.809 Factory rent $8,200 $2,700 Property taxes Factory administration $13,700 + $0.80q The Production Department planned to work 4,500 labor-hours in March; however, it actually worked 4,300 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March $ 71,670 $ 11,430 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration $ 7,840 $ 2,410 $ 30,340 $ 8,600 $ 2,700 $ 16,530