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 Cost Formulas $16.30q $4,000+ $1.40q $5,500 + $0.70q Supplies $1,700+ $0.10q Equipment depreciation Factory rent $18,700 + $3.00q $8,600 $2,400 Property taxes Factory administration $13,500 + $0.70q 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: Actual Cost Incurred in March $ 66,780 Direct labor Indirect labor Utilities $ 9,060 $ 8,830 Supplies $ 2,330 Equipment depreciation $ 30,700 $ 9,000 $ 2,400 $ 15,670 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. 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 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 Labor-hours 4,000 Direct labor $ 66,780 Indirect labor 9,060 Utilities 8,830 Supplies 2,330 Equipment depreciation 30,700 Factory rent 9,000 Property taxes 2,400 Factory administration 15,670 Total expense $ 144,770 Flexible Budget Planning Budget