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	$16.60q
Indirect labor	$4,100 + $1.60q
Utilities	$5,200 + $0.50q
Supplies	$1,300 + $0.30q
Equipment depreciation	$18,400 + $2.80q
Factory rent	$8,500
Property taxes	$2,500
Factory administration	$13,600 + $0.60q

The Production Department planned to work 4,000 labor-hours in March; however, it actually worked 3,800 labor-hours during the month. Its actual costs incurred in March are listed below:

	Actual Cost Incurred in March
Direct labor	$	64,720
Indirect labor	$	9,680
Utilities	$	7,590
Supplies	$	2,710
Equipment depreciation	$	29,040
Factory rent	$	8,900
Property taxes	$	2,500
Factory administration	$	15,230

Required:

1. Prepare the Production Departments planning budget for the month.

2. Prepare the Production Departments flexible budget for the month.

3. Prepare the Production Departments flexible budget performance report for March, including both the spending and activity variances.

Complete this question by entering your answers in the Required 1 Required 2 Required 3 Prepare the Production Department's planning budget for the m Packaging Solutions Corporation Production Department Planning Budget For the Month Ended March 31 ences Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense