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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	$16.50q
Indirect labor	$4,400 + $1.70q
Utilities	$5,500 + $0.40q
Supplies	$1,700 + $0.30q
Equipment depreciation	$18,800 + $2.90q
Factory rent	$8,500
Property taxes	$2,400
Factory administration	$13,200 + $0.50q

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	$	10,890
Utilities	$	7,610
Supplies	$	3,200
Equipment depreciation	$	30,690
Factory rent	$	8,900
Property taxes	$	2,400
Factory administration	$	14,580

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, including both the spending and activity variances.

Required1 Required 2 Required 3 Prepare the Production Department's pla 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 0

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