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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

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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 is the number of labor-hours worked in a month: Coat Formulas Direct labor $15.809 Indirect labor 58,200 - $1.600 Utilities $6,400 + $0.800 Supplies $1,100$0.400 Equipment depreciation $23,000 - $3.709 Tactory rent $8,400 Property taxes $2,100 Tactory administration $11.700 + $1.909 The Production Department planned to work 8,000 labor hours in March; however, it actually worked 8,400 labor hours during the month. Its actual costs incurred in March are listed below. Sok Direct labor Indirect labor ULLE Supplies Equipment depreciation Tactory cent property taxes Tactory Administration retual Cost Incurred in March $ 134,730 $19,060 S 14,570 $4.980 $ 54,080 $8,700 $ 2.100 $26.470 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 $ 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 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 (.e., zero variance). Input all amounts as positive values.) Packaging Solutions Corporation Spending Variances For the Month Ended March 31 Actual Floxible Results Spending Variances Budget Labor-hours 8,400 Direct labor $ 134.730 Indirect labor 19,860 Utilities 14,570 Supplies 4.980 Equipment depreciation 54,080 Factory rent 8,700 Property taxes 2,100 Factory administration 26,470 Total expenso $ 265,490

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