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
Direct labor	$16.30q
Indirect labor	$4,700 + $1.80q
Utilities	$5,500 + $0.40q
Supplies	$1,400 + $0.30q
Equipment depreciation	$18,500 + $2.90q
Factory rent	$8,300
Property taxes	$2,500
Factory administration	$13,300 + $0.80q

The Production Department planned to work 4,400 labor-hours in March; however, it actually worked 4,200 labor-hours during the month. Its actual costs incurred in March are listed below:

	Actual Cost Incurred in March
Direct labor	$	70,040
Indirect labor	$	11,800
Utilities	$	7,650
Supplies	$	2,930
Equipment depreciation	$	30,680
Factory rent	$	8,700
Property taxes	$	2,500
Factory administration	$	16,050

Required:

1. Prepare the Production Departments planning budget for the month.

2. Prepare the Production Departments flexible budget for the month.

3. Prepare the Production Departments flexible budget performance report for March, including both the spending and activity variances.

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare 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 s 0 Required 1 Required 2 > Required 1 Required 2 Required 3 Prepare 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 s 0 Required 1 Required 2 Required 3 Prepare the Production Department's flexible 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 Corporation Production Department Flexible Budget Performance Report For the Month Ended March 31 Flexible Budget 4,200 Actual Results Planning Budget Labor-hours Direct labor S 70.040 Indirect labor 11,800 Utilities 7,650 2.930 30.680 Supplies Equipment depreciation Factory rent Property taxes Factory administration 8,700 2,500 16.050 Total expense $ 150,350