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 q is the number of labor-hours worked in a month: Direct labor Indirect labor Utilities Cost Formulas $16.60q $4,400 +$1.40q $5,800 $0.60g Supplies $1,700 $0.40g Equipment depreciation $18,300 $2.90g Factory rent Property taxes Factory administration $8,400 $2,600 $13,500 +$0.50g 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: Direct labor Indirect labor. Utilities Supplies Actual Cost Incurred in March $ 73,020 $ 9,880 $ 8,890 $ 3,710 Equipment depreciation $ 30,770 Factory rent Property taxes Factory administration $ 8,800 $ 2,600 $14,980 Complete this question by entering your answers in the tabs below. 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 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense Required Required 2 > Complete this question by entering your answers in the tabs below. 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 < Required 1 Required 3 > 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 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 Spending Variances Flexible Results Budget Labor-hours Direct labor 4,300 $ 73,020 Indirect labor 9,880 Utilities 8,890 Supplies 3,710 Equipment depreciation 30,770 Factory rent 8,800 Property taxes 2,600 Factory administration. 14,980 Total expense $ 152,650