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 Cost Formulas $16.20g Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration $4,200 + $1.90g $5,200 + $0.40g $1,600 $0.10g $18,500 $2.70g $8,200 $2,700 $13,800 +$0.70g The Production Department planned to work 4,300 labor-hours in March; however, it actually worked 4,100 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March $ 67,980 $ 11,550 $ 7,310 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Required: $ 2,240 $ 29,570 $ 8,600 $ 2,700 $ 16,040 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