1. 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: The Production Department planned to work 4,200
labor-hours in March; however, it actually worked 4,000 labor-hours during the month. Its actual
costs incurred in March are listed below: Requlred: 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. Prepare the Production Department's flexible
budget performance report for March, including both the spending and activity variances.
(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and
"None" for no effect (i.e., zero variance). Input all amounts as positive values.)