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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: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Cost Formulas $16.50 $4,600 - $2.00 55,600 + $0.809 $1,700 + $0.30 $18,688 + $2.989 $8,eee $2,600 $13,600 + $0.600 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 $ 69,270 Indirect labor $ 12,380 Utilities $ 9,430 Supplies $3,200 Equipment depreciation $ 30,490 Factory rent $ 8,400 Property taxes $ 2,600 Factory administration $ 15,410 Required 1 Required 2 Required 3 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 Required 1 Required 2 Required 3 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 Checl Required 1 Required 2 Rquired 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 (i.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 Results Budget Budget Labor-hours 4.100 $ 69.270 Direct labor Indirect labor 12,380 Utilities Supplies Equipment depreciation Factory rent Property taxes 9,430 3,200 30,490 8,400 2,600

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