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 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration $16.50q S 4,700+ 1.70q S 5,600 S 0.70q S 1,700+$ 0.30q $18,500 + $ 2.60q $8,500 $%2,600 $13,200+$ 0.60q he actual costs incurred in March in the Production Department are listed below: Actual Cost Incurred in Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration March $70,920 $ 11,360 $ 9,070 $ 3,230 $29,420 $ 8,900 $ 2,600 $15,070