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 Utlities Supplies Equipment depreciation Factory rent Property taxes Factory administratiorn 16.60q 4,700$ 1.80q 5,000 $ 0.80q $ 1,200 $ 0.20q 18,600 S 2.90q $ 8,200 S 2,800 $13,600 0.70q The actual costs incurred in March in the Production Department are listed below: Actual Cost Incurred itn Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration March $ 69,700 S 11,620 $ 8,830 $ 2,270 $ 30,490 $8,600 $ 2,800 $15,840 Required: 1. The company had budgeted for an activity level of 4,300 labor-hours in March. Complete 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 Utiities Supplies Factory rent Property taxes 2. The company actually worked 4,100 labor-hours in March. Complete the Production Department's fexible budget for he month. Packaging Solutions Corporation Production Department Flexible Budget For the Month Ended March 31 Direct labor Indirect labor Ubilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense 3. Complete the Production Department's fexible budget performance report for March, including both the spending and activity variances. (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 C Production Department Flexible Budget Performance Report For the Month Ended March 31 Spending Variances Activity Variances Direct labor Indirect labor Utiliies Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense