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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

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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 is the number of labor-hours worked in a month: Cost Formulas Direct labor $16.509 Indirect labor $4,500 + $1.909 Utilities $5,400 + $0.604 Supplies $1,300 + $0.300 Equipment depreciation $18,400 - $2.400 Factory rent 58,500 Property taxes $2,600 Factory administration $13,500 + $0.604 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: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Actual Cost Incurred in March $ 64,320 $11.280 $ 8,190 $ 2,710 $27,520 $ 8,900 $ 2,600 $15, 130 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

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