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 Indirect labor Utilities Cost Formulas. $16.600 $4,600 $1.50g $5,700 $0.90q Supplies Equipment depreciation Factory rent Property taxes Factory administration $1,400 $0.20 $18,700 +$2.60g $8,200 $2,600 $13,600 50.800 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: Actual Cost Incurred in March Direct labor $60,040 Indirect labor $10,000 Utilities $9,870 Supplies $2,450 Equipment depreciation $29,100 Factory rent $9,600 Property taxes $2,600 $16,190 Factory administration Required: 1. Prepare the Production Department's planning budget for the month. 2. Prepare the Production Department's flexible budget for the month. 3. Prepare the Production Department's flexible budget performance report for March, including both the spending and activity. variances.