Exercise 8-16 Flexible Budgets in a Cost Center [LO8-1, Packaging Solutions Corporation manufactures and sells a wide variety of packaging Performance reports are prepared monthly for each department. The planning bud for the Production Department are based on the following formulas, where q is the number worked in a month: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration $16.50q 4,100+$ 1.90q $5,100 $ 0.80q 1,700+$ 0.10q $18,700 2.90q $8,100 $2,800 $13,500 $ 0.80q The actual costs incurred in March in the Production Department are listed below: Actual Cost Incurred in Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration March 64,320 10,880 8,690 $ 2.310 $29,720 S 8,500 $2,800 $15,930 of Required: 1. The company had budgeted for an activity level of 4,000 labor-hours in March Production Department's 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