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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 a is the number of labor hours worked in a month: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Cost Formulas $16.209 $4, 100 + $1.509 $5,100 + $0.300 $1,300 + $0.309 $18,700 + $2.609 $8,300 $2,800 $13, 100 + $0.569 The Production Department planned to work 4,300 labor-hours in March; however, it actually worked 4 100 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March Direct labor $ 67,980 Indirect labor $ 9,730 Utilities $ 6, 780 Supplies $ 2,800 Equipment depreciation $ 29, 360 Factory rent $ 8,700 Property taxes $ 2,800 Factory administration $ 14, 480 3. Prepare the Production Department's flexible budget performance report for March, including both the spending and activity variances. Complete the question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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 (ie, zero variance). Input all amounts as positive values.) Packaging Studio Compornon Production Department Flexide Bhupet Performance Report For the Month Ended March 31 AN Flexible Results Budget 4.100 4,100 Planning Budget Labor hours Direct labor 5 67,080 $ $ 66,420 10.250 Indirect labor 9,730 6.780 2,800 29,360 1.560 520 4500 2700 6330 2.530 29 350 Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense None 400 8.700 8.300 2.800 2.800 None 14.480 15.150 $ 144,140 $ 142,630S 1.49010

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