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Packaging SolutionsCorporation manufactures and sells a wide variety of packagingproducts. Performance reports are prepared monthly for eachdepartment. The planning budget and flexible budget for theProduction Department are based on the following formulas, whereq is the number of labor-hours worked in a month:Cost FormulasDirect labor$16.20qIndirect labor$4,100 + $1.50qUtilities$5,400 + $0.90qSupplies$1,800 + $0.40qEquipment depreciation$18,300 + $2.40qFactory rent$8,100Property taxes$2,400Factory administration$13,500 + $0.60qThe ProductionDepartment planned to work 4,300 labor-hours in March; however, itactually worked 4,100 labor-hours during the month. Its actualcosts incurred in March are listed below:Actual Cost Incurred in MarchDirect labor$67,980Indirectlabor$9,730Utilities$9,660Supplies$3,730Equipmentdepreciation$28,140Factoryrent$8,500Propertytaxes$2,400Factoryadministration$15,310Required:1. Prepare theProduction Department’s planning budget for the month.2. Prepare theProduction Department’s flexible budget for the month.3. Calculate thespending variances for all expense items