Prepare the Production Departments flexible budget performance report for March.

Note: 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	$69,270
Indirect labor	12,080
Utilities	8,900
Supplies	2,900
Equipment depreciation	29,680
Factory rent	8,700
Property taxes	2,900
Factory administration	15,610
Total expenses	$150,040

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Its Production Departments planning budget and flexible budget are based on the following formulas, where q is the number of labor-hours worked in a month:

	Cost Formulas
Direct labor	$16.50q
Indirect labor	$4,300 + $2.00q
Utilities	$5,500 + $0.70q
Supplies	$1,400 + $0.30q
Equipment depreciation	$18,200 + $2.80q
Factory rent	$8,300
Property taxes	$2,900
Factory administration	$13,800 + $0.60q

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	$ 12,080
Utilities	$ 8,900
Supplies	$ 2,900
Equipment depreciation	$ 29,680
Factory rent	$ 8,700
Property taxes	$ 2,900
Factory administration	$ 15,610

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.

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 expenses	$

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 expenses