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	$16.50q
Indirect labor	$4,800 + $1.90q
Utilities	$5,500 + $0.80q
Supplies	$1,700 + $0.30q
Equipment depreciation	$18,300 + $2.70q
Factory rent	$8,100
Property taxes	$2,500
Factory administration	$13,100 + $0.60q

The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 labor-hours during the month. Its actual costs incurred in March are listed below:

	Actual Cost Incurred in March
Direct labor	$	67,620
Indirect labor	$	11,960
Utilities	$	9,250
Supplies	$	3,170
Equipment depreciation	$	29,100
Factory rent	$	8,500
Property taxes	$	2,500
Factory administration	$	14,850

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

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 - ?

Required 2

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 - ?