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	$16.30q
Indirect labor	$4,600 + $2.00q
Utilities	$5,500 + $0.50q
Supplies	$1,600 + $0.30q
Equipment depreciation	$18,700 + $2.70q
Factory rent	$8,200
Property taxes	$2,700
Factory administration	$13,700 + $0.80q

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	$ 68,410
Indirect labor	$ 12,380
Utilities	$ 8,040
Supplies	$ 3,100
Equipment depreciation	$ 29,770
Factory rent	$ 8,600
Property taxes	$ 2,700
Factory administration	$ 16,370

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 Departments 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

Prepare the Production Departments 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

Prepare the Production Departments 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 Results			Flexible Budget			Planning Budget
Labor-hours	4,100
Direct labor	$68,410
Indirect labor	12,380
Utilities	8,040
Supplies	3,100
Equipment depreciation	29,770
Factory rent	8,600
Property taxes	2,700
Factory administration	16,370
Total expense	$149,370

rev: 07_01_2020_QC_CS-208650