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 FormulasDirect labor$16.30qIndirect labor$4,700 + $1.70qUtilities$5,600 + $0.60qSupplies$1,600 + $0.30qEquipment depreciation$18,600 + $2.50qFactory rent$8,500Property taxes$2,900Factory administration$13,700 + $0.70q

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 MarchDirect labor$ 68,410Indirect labor$ 11,190Utilities$ 8,570Supplies$ 3,100Equipment depreciation$ 28,850Factory rent$ 8,900Property taxes$ 2,900Factory administration$ 15,940

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 flexible budget for the month. \begin{tabular}{|l|} \hline \multicolumn{1}{|c|}{ Packaging Solutions Corporation } \\ \hline \multicolumn{1}{|c|}{ Production Department Flexible Budget } \\ \hline \\ \hline Direct labor \\ \hline Indirect labor \\ \hline Utilities \\ \hline Supplies \\ \hline Equipment depreciation \\ \hline Factory rent \\ \hline Property taxes \\ \hline Factory administration \\ \hline Total expense \\ \hline \end{tabular} Complete this question by entering your answers in the tabs below. Required 2 Requilred 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.)