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: $16.40 Direct labor 4,500 2.00a Indirect labor Utilities 5,400 0.90 Supplies 1,500 0.20a Equipment depreciation $18,200 2.70q $8,500 Factory rent Property taxes $2,600 $13,200 0.70 Factory administration The actual costs incurred in March in the Production Department are listed below: Actual Cost Incurred in March 70,480 Direct labor Indirect labor 12,480 9,750 Utilities Supplies 2,590 29,540 Equipment depreciation 8,900 Factory rent Property taxes 2,600 15,510 Factory administration