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: Direct labor Indirect labor Cost Formulas $16.409 $4,800 + $1.60q Utilities $5,700 + $0.70q Supplies $1,600 + $0.30q Equipment depreciation $18,100 + $2.609 Factory rent $8,400 $2,700 $13,700 + $0.609 Property taxes Factory administration The Production Department planned to work 4,100 labor-hours in March; however, it actually worked 3,900 labor-hours during the month. Its actual costs incurred in March are listed below: Direct labor Indirect labor Utilities Actual Cost Incurred in March $ 65,560 $ 10,540 $ 8,960 Supplies $ 3,040 Equipment depreciation $ 28,240 $ 8,800 $ 2,700 $ 15,390 Factory rent Property taxes Factory administration Required: 1. Prepare the Production Department's planning budget for the month. 2. Prepare the Production Department's flexible budget for the month. 3. Prepare the Production Department's 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 Actual labor-hours Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense 3,900 $ 78,720 12,480 $ 91,200 < Required 1 Required 2 > Complete this question by entering your answers in the tabs below. 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 $ 0 < Required 1 Required 3 > 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 Actual Results Flexible Budget Labor-hours 3,900 Direct labor $ 65,560 Indirect labor 10,540 Utilities 8,960 Supplies 3,040 Equipment depreciation 28,240 Factory rent 8,800 Property taxes 2,700 Factory administration 15,390 Total expense $ 143,230 < Required 2 Required 3 > Planning Budget