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 20 q Indirect labor $4,400 $1 60 q Utilities $5,300 $0 70 q Supplies $1,500 $0 20 q Equipment depreciation $18,700 $2 50 q Factory rent $8,100 Property taxes $2,400 Factory administration $13,200 $0 70 q The Production Department planned to work 4,500 labor hours in March however, it actually worked 4,300 labor hours during the month Its actual costs incurred in March are listed below Actual Cost Incurred in March Direct labor $ 71,220 Indirect labor $ 10,780 Utilities $ 8,840 Supplies $ 2,610 Equipment depreciation $ 29,450 Factory rent $ 8,500 Property taxes $ 2,400 Factory administration $ 15,580 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 Prepare the Production Department's planning budget for the month Prepare the Production Department's flexible budget for the month 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 (i e , zero variance) Input all amounts as positive values )

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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

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	$16.20q
Indirect labor	$4,400 + $1.60q
Utilities	$5,300 + $0.70q
Supplies	$1,500 + $0.20q
Equipment depreciation	$18,700 + $2.50q
Factory rent	$8,100
Property taxes	$2,400
Factory administration	$13,200 + $0.70q

The Production Department planned to work 4,500 labor-hours in March; however, it actually worked 4,300 labor-hours during the month. Its actual costs incurred in March are listed below:

	Actual Cost Incurred in March
Direct labor	$	71,220
Indirect labor	$	10,780
Utilities	$	8,840
Supplies	$	2,610
Equipment depreciation	$	29,450
Factory rent	$	8,500
Property taxes	$	2,400
Factory administration	$	15,580

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. image text in transcribed

Prepare the Production Department's planning budget for the month. Prepare the Production Department's flexible budget for the month. 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 (i.e., zero variance). Input all amounts as positive values.)