Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared...

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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: Cost Formulas Direct labor $16.10g $4,200 Indirect labor Utilities $2.00g $5,200+ $0.40g $1,700+ $0.20g Supplies $18,100+ $2.90g Equipment depreciation Factory rent $8,300 Property taxes $2,600 Factory administration $13,000+ $0.90g The Production Department planned to work 4,100 labor-hours in March; however, it actually worked 3,900 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March Direct labor $ 64,330 Indirect labor $ 11,580 Utilities $ 7,230 Supplies $ 2,730 $ 29,410 Equipment depreciation Factory rent $ 8,700 Property taxes $ 2,600 Factory administration $ 15,920 Required: 1. Prepare the Production Department's planning budget for the month. 2. Prepare the Production Department's flexible budget for the month. 3. Prepare the Production Department's flexible budget performance report for March, including both the spending and activity variances. 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: Cost Formulas Direct labor $16.10g $4,200 Indirect labor Utilities $2.00g $5,200+ $0.40g $1,700+ $0.20g Supplies $18,100+ $2.90g Equipment depreciation Factory rent $8,300 Property taxes $2,600 Factory administration $13,000+ $0.90g The Production Department planned to work 4,100 labor-hours in March; however, it actually worked 3,900 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March Direct labor $ 64,330 Indirect labor $ 11,580 Utilities $ 7,230 Supplies $ 2,730 $ 29,410 Equipment depreciation Factory rent $ 8,700 Property taxes $ 2,600 Factory administration $ 15,920 Required: 1. Prepare the Production Department's planning budget for the month. 2. Prepare the Production Department's flexible budget for the month. 3. Prepare the Production Department's flexible budget performance report for March, including both the spending and activity variances.

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