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:

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:

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.

Cost Formulas Direct labor $16.60q Indirect labor $4,700+ 1.30q $5,800+ $0.40q $1,400 +$0.30q $18,400 + $2.60q $8,500 $2,600 $13,600 $0.60q Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Actual Cost Incurred in March $ 69,700 $ 9,470 $7,910 $ 2,900 $ 29,060 8,900 $ 2,600 $15,410 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration d 2 Required 3 Required 1 Require Prepare the Production Department's plann 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 Required 1 Required 2 Required 3 Prepare the Production Department's flexil Packaging Solutions Corporation Production Department Flexible Budget For the Month Ended March 31 Direct labo Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense Required1 Required 2 Required 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 Budget Results Budget 4,100 Labor-hours $ 69,700 Direct labor Indirect labor 9,470 7,910 Utilities Supplies 2,900 Equipment depreciation 29,060 Factory rent 8,900 Property taxes 2,600 Factory administration 15,410 $ 145,950 Total expense