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				$	16.40	q
Indirect labor	$	4,600	+	$	2.00	q
Utilities	$	5,600	+	$	0.60	q
Supplies	$	1,700	+	$	0.40	q
Equipment depreciation	$	18,000	+	$	2.60	q
Factory rent				$	8,500
Property taxes				$	2,700
Factory administration	$	13,000	+	$	0.80	q

The actual costs incurred in March in the Production Department are listed below:

	Actual Cost Incurred in March
Direct labor	$	65,560
Indirect labor	$	11,980
Utilities	$	8,450
Supplies	$	3,550
Equipment depreciation	$	28,140
Factory rent	$	8,900
Property taxes	$	2,700
Factory administration	$	15,510

Required: 1. The company had budgeted for an activity level of 4,100 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 Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense 2. The company actually worked 3,900 labor-hours in March. Complete the Production Department's flexible budget for the month. Packaging Solutions Corporation Production Department Flexible Budget For the Month Ended March 31 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense