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: $16.50 Direct labor Indirect labor 4,300 1.60q 5,600 0.70q Utilities 1,600 0.20 Supplies $18,100 2.90a Equipment depreciation $8,400 Factory rent $2,900 Property taxes $13,100 0.80 Factory administration The actual costs incurred in March in the Production Department are listed below: Actual Cost Incurred in March 65,970 Direct labor Indirect labor 10,040 8,860 Utilities 2,630 Supplies 29,410 Equipment depreciation 8,800 Factory rent Property taxes 2,900 Factory administration 15,610