Prime Packaging Ltd manufactures and sells a variety of packaging solutions. As a means of monitoring performance, performance reports are prepared on a monthly basis. The production manager is struggling to pull together their report so have asked you, as the management accountant to assist them. Outlined below is what the production manager has managed to prepare so far. Labour hours (per unit) Prime Packaging Ltd Production department flexible budget performance report For the month ended 30 June Total expenses Actual results Direct labour Indirect labour Utilities Supplies Equipment depreciation ? Factory administration ? 9,480 B) Utilities Supplies Equipment depreciation Factory administration 134,73 3880 ? 2 Fav Spending (F)/Adv Flexible variance (A) budget 0? 4,940 ? 288,08 ? 8? The following information is also available: Cost Direct labour (DL) Indirect labour ? 1,780 F 1,450 A ? 0 ? ? ? ? 132,72 2 0? 21,640 ? ? ? Activity Fav variance (F)/Ad v (A) ? S 4,444 ? ? ? ? ? ? 2427 Actual and budgeted direct labour rates The fixed cost element of the indirect labour The variable cost per hour for utilities The fixed and variable cost elements for supplies 336 A ? ? ? Detail Direct labour rate x direct labour hours Ex fixed variable (1.50 per DL hour) 6,500 fixed variable (Ex per DL hour) Ex fixed variable (Ex per DL hour) 78,400 18,700 + variable (1.90 per DL hour) Plannin 9 budget ? ? 12,800 4,300 ? ? Requirement: A) Complete the production department's flexible budget performance report (by filling in the question marks). The workings should be completed in an excel spreadsheet with the final flexible budget presented in a PowerPoint presentation, along with high level details of the workings. Within your presentation include the following: 9,000 ? comment on the performance of the production department. including what action the department may what to take going forward. C) The production department is considered a cost centre within Prime Packaging Ltd, outline what considerations should be given to determine how much involvement the production department should have in setting their departmental targets.