Exercise 9-16 (Algo) 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 is the number of lobor-hours worked in a month Coat Pormulas Direct labor $16.600 Indirect labor 54.600 - $1.700 Utilities 35,700 + $0.70 Supplies $1.300 + $0.30 Equin depreciation $18,300 - $2.400 Factory rent $5.200 Property tas $2 800 Factory linistration $13.400 + 30.306 The Production Department planned to work 4.300 lobor-hours in March, however, it actually worked 4,100 labor-hours during the month. Its actual costs incurred in March are listed below! Actual Cout Incurred in March Direct labor $ 60, 700 Indirect labor $ 11,00 Utilities $.8 100 Sapplies 3 2.800 Equipoent depreciation $ 23. 140 Porto rent $ 3.800 Property taxes $ 2300 Factory sinistration $ 10.00 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 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the spending variances for all expense items. (Indicate the effect of each variance by selecting "F" for for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Flexible Budget Labor-hours Direct labor Indirect labor Utilities Packaging Solutions Corporation Spending Variances For the Month Ended March 31 Actual Results Spending Variances 4,100 S 69,700 11,090 9,100 2,800 28,140 8,600 2.800 16,070 148,300 Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense