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: $16.30a Direct labor 4,400 1.70 Indirect labor 5,500 0.80a Uti ties 1,200 0.20a Supplies $18,100 2.40 Equipment depreciation Factory rent $8,600 $2,700 Property taxes $13,200 0.60 Factory administration The actual costs incurred in March in the Production Department are listed below: Actual Cost Incurred in March 68,410 Direct labor 10,890 Indirect labor 9,330 Utilities 2,270 Supplies 27,940 Equipment depreciation Factory rent 9,000 2,700 Property taxes 15,010 Factory administration