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 $16.50 Indirect labor $4,500 + $1.909 Utilities $5,100 + $0.509 Supplies $1,400 + $0.309 Equipment depreciation $18,600 + $2.409 Factory rent $8,200 Property taxes $2,600 Factory administration $13,300 + $0.989 The Production Department planned to work 4,400 labor-hours in March; however, it actually worked 4,200 tabor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March Direct labor $ 70,920 Indirect labor $ 12,040 Utilities $ 7,690 Supplies $ 2,930 Equipment depreciation $28,680 Factory rent $ 8,600 Property taxes $ 2,600 Factory administration $ 16,490 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. 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 $ $ 0 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 expense $ 0 Prepare 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 (1.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 Budget Budget 4,200 Results Labor-hours Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense $ 70,920 12,040 7,690 2.930 28,680 8,600 2,600 16,490 $ 149,950