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 $16.50g $4,500 $1.90g Utilities $5,500 + $0.70g Supplies $1,600 + $0.20g Equipment depreciation $18,100 + $2.90g Factory rent $8,100 $2,700 Property taxes Factory administration $13,000 +$0.60g 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: Actual Cost Incurred in March $ 65,970 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Required: $ 11,470 $ 8,760 $ 2,630 $ 29,410 $ 8,500 $ 2,700 $ 14,690 1. Prepare the Production Department's planning budget for the month. 2. Prepare the Production Department's flexible budget for the month. 3. Calculate the spending variances for all expense items. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the spending variances for all expense items. (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 Spending Variances For the Month Ended March 31 Actual Results Spending Variances Flexible Budget Labor-hours Direct labor 3,900 3,900 $ 65,970 $ 1,620 U Indirect labor 11,470 440 F Utilities 8,760 530 U Supplies 2,630 250 U Equipment depreciation 29,410 0 None Factory rent 8,500 400 U Property taxes 2,700 0 None Factory administration 14,690 Total expense $ 144,130 $ 650 F 1,710 U < Required 2 Required 3 >