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: ![image text in transcribed](https://dsd5zvtm8ll6.cloudfront.net/si.experts.images/questions/2024/09/66fb3371bda6e_73766fb3371443a7.jpg)
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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 q is the number of labor-hours worked in a month: Direct labor Indirect labor Utilities Supplies Cost Formulas $16.60q $4,100+ $1.30q $5,400+ $0.50q $1,600+ $0.30q $18,800+ $3.00q Equipment depreciation Factory rent $8,500 Property taxes $2,500 Factory administration $13,700 + $0.80q The Production Department planned to work 4,300 labor-hours in March; however, it actually worked 4,100 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March Direct labor $ 69,700 $ 8,870 Indirect labor Utilities $ 7,940 Supplies $ 3,100 Equipment depreciation $ 31,100 Factory rent $ 8,900 Property taxes $ 2,500 Factory administration $ 16,370 Required: 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 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 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 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 4,100 Labor-hours Direct labor $ 69,700 Indirect labor 8,870 Utilities 7,940 Supplies 3,100 Equipment depreciation 31,100 Factory rent 8,900 Property taxes 2,500 Factory administration 16,370 Total expense 148,480 Required 3 > $