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: Cost Formulas Direct labor $16.40q Indirect labor $4,400 + $1.30q Utilities $5,100 + $0.70!; Supplies $1,600 + $0.20q Equipment depreciation $18,500 + $2.60q Factory rent $8,500 Property taxes $2,900 Factory administration $13,800 + $0.90q 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: Actual Cost Incurred in March Direct labor $65,560 Indirect labor $ 8,910 Utilities $ 8,360 Supplies $ 2,630 Equipment depreciation $28,640 Factory rent $ 8,900 Property taxes $ 2,900 Factory administration $16,720 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. Direct labor Indirect labor Utilities Factory rent Property taxes Factory administration Total expense Equipment depreciation 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 expensePrepare 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 Flexible Planning Results Budget Budget Labor-hours 3,900 Direct labor $ 65,560 Indirect labor 8,910 Utilities 8,360 Supplies 2,630 Equipment depreciation 28,640 Factory rent 8,900 Property taxes 2,900 Factory administration 16,720 Total expense $ 142,620