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 Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration $16.10g $4,600 $1.70q $5,000 $0.70g $1,700 $0.30q $18,200 $2.80q $8,600 $2,600 $13,000 + $0.50g 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: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Actual Cost Incurred in March 69,160 11,260 $ 8,470 $ 3,230 $ 29,960 $ 9,000 $ 2,600 $ 14,430