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 Cost Formulas $16.20q Indirect labor Utilities $4,300 + $1.80q $5,400 + $0.309 Supplies Equipment depreciation Factory rent Property taxes Factory administration $1,300 + $0.109 $18,200+ $3.009 $8,400 $2,600 $13,400 + $0.709 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: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Actual Cost Incurred in March $ 64,740 $ 10,860 $ 7,020 $ 1,920 $ 29,900 $ 8,800 $ 2,600 $ 15,500 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 Budgeted labor-hours 4,100 Direct labor $ 66,420 Indirect labor 11,680 Utilities 6,630 Supplies 1,710 Equipment depreciation 30,500 Factory rent 8,400 Property taxes 2,600 Factory administration 16,270 Total expense $ 144,210 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 Actual labor-hours 3,900 Direct labor $ 63,180 Indirect labor 11,320 Utilities 6,570 Supplies 1,690 Equipment depreciation 29,900 Factory rent 8,400 Property taxes 2,600 Factory administration 16,130 Total expense $ 139,790