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 $16.50g $4,300 +$1.90q $5,300 +$0.40g Supplies $1,700+ $0.10g Equipment depreciation $18,600+ $2.60g Factory rent $8,300 Property taxes Factory administration $2,600 $13,400 + $0.50g The Production Department planned to work 4,500 labor-hours in March; however, it actually worked 4,300 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration $ 72,570 $ 12,030 $ 7,490 $ 2,360 $ 29,780 $ 8,700 $ 2,600 $ 14,880 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. 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 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 Labor-hours Packaging Solutions Corporation Production Department Flexible Budget Performance Report For the Month Ended March 31 Actual Results 4,300 Direct labor $ 72,570 Indirect labor 12,030 Utilities 7,490 Supplies 2,360 Equipment depreciation 29,780 Factory rent 8,700 Property taxes 2,600 Factory administration Total expense 14,880 $ 150,410 Flexible Budget Planning Budget