Packaging Solutions Corporation manufactures and sells a

Exercise 8-16 Flexible Budgets in a Cost Center [LO8-1, LO8-2] 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 $16.30q $4,400 1.90q 5,600+$ 0.80q $ 1,400 0.40q $18,600 2.80q $8,400 $2,800 $13,200+$ 0.70q The actual costs incurred in March in the Production Department are listed below: Actual Cost Incurred in Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration March $ 68,410 $ 11,750 $ 9,430 S 3,330 S 30,080 8,800 S 2,800 $15,440