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Acompany manufactures and sells a wide variety of products. Performance reports are prepared monthly for...

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Accounting

Acompany manufactures and sells a wide variety of 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 $16.40q
Indirect labor $4,500+ $1.60q
Utilities $5,700+ $0.70q
Supplies $1,700+ $0.20q
Equipment depreciation $18,400+ $2.50q
Factory rent $8,500
Property taxes $3,000
Factory administration $13,500+ $0.70q
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 $ 65,560
Indirect labor $ 10,240
Utilities $ 8,960
Supplies $ 2,730
Equipment depreciation $ 28,150
Factory rent $ 8,900
Property taxes $ 3,000
Factory administration $ 15,600
Required:
Prepare the Production Departments flexible budget performance report for March, including both the spending and activity variances.

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