Exercise 9-16 (Algo) Flexible Budgets in a Cost Center [LO9-1, L09-2] 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 $16.50g $4,100 +$2.00q $5,600 +$0.40g $1,400 +$0.30q Supplies Equipment depreciation Factory rent Property taxes Factory administration $18,500 +$2.50g $8,300 $2,800 $13,800 +$0.60g 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 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Required: Incurred in March $ 67,620 $ 11,680 $ 7,670 $2,870 $ 28,500 $ 8,700 $ 2,800 $ 15,550 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 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 1 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 $ 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 Flexible Results Spending Variances Budget Labor-hours Direct labor 4,000 $ 67,620 Indirect labor 11,680 Utilities 7,670 Supplies 2,870 Equipment depreciation 28,500 Factory rent 8,700 Property taxes 2,800 Factory administration 15,550 Total expense $ 145,390