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: Cost Formulas $16.40q $4,700 $1.90q $5,100$e.50q $1,500 + $e.10q $18,700 + $3.00q $8,300 $2,700 $13.700 + Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration $0.60q 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 Actual Cost Incurred in March $65,560 $11,670 $ 7,540 $2,120 $30,400 $ 8,700 $2,700 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration $15,390 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