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Exercise 9-15 Flexible Budget Performance Report in a Cost Center [LO9-1, LO9-4] 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 $16.20q Direct labor 4,100 1.70q Indirect labor 5,600 0.60q Utilities 1,700 0.20q Supplies $18,700 2.50q Equipment depreciation $8,300 Factory rent $2,800 Property taxes $13,300 0.70 Factory administration The actual costs incurred in March in the Production Department are listed below: Actual Cost Incurred in March 63,120 Direct labor 10,080 Indirect labor 8,390 Utilities 2,710 Supplies 28,200 Equipment depreciation 8,700 Factory rent 2,800 Property taxes 15,330 Factory administration