Exercise 9-16 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 Supplies Equipment depreciation Factory rent Property taxes Factory administration Cost Formulas $16.30q $4,500 $1.300 $5,100 + $0.40q $1,600 +$0.20q $18,500+$2.500 $8,200 $2,700 $13,100 +$0.80q The Production Department planned to work 4,100 labor-hours in March; however, it actually worked 3,900 labor-hours during the month. Its actual costs incurred in March are listed below: Utilities Supplies Direct labor Indirect labor Equipment depreciation Factory rent Property taxes Factory administration Required: Actual Cost Incurred in March $65,150 $ 9,010 $ 7,130 $ 2,630 $28,250 $ 8,600 $ 2,700 $15,610 1. Prepare the Production Department's planning budget for the month. < Previ 2 of 6 Next >