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 $16.60q $4,700 +$1.80q Direct labor Indirect labor Utilities $5,200 +$0.60q Supplies $1,200+ $0.30q Equipment depreciation $18,800 +$2.90q Factory rent $8,500 $13,700 +$0.80q Property taxes Factory administration) $2,600 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. Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration. Actual Cost Incurred in March $ 68,040 $ 11,440 $8,110 $ 2,670 $ 30,400 $ 8,900 $ 2,600 $16,290 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. 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 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense $ 0 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 I $ 0 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 variance). Input all amounts as positive values.) Packaging Solutions Corporation Production Department Flexible Budget Performance Report For the Month Ended March 31 Actual Results Labor-hours 4,000 Direct labor $ 68,040 Indirect labor 11.440 Utilities 8,110 Supplies 2,670 Equipment depreciation 30,400 Factory rent 8,900 Property taxes 2,600 Factory administration Total expense 16,290 $ 148,450 Flexible Budget Planning Budget