formulas, where q is the number of labor-hours worked in a month:

	Cost Formulas
Direct labor	$16.60q
Indirect labor	$4,300 + $1.70q
Utilities	$5,700 + $0.60q
Supplies	$1,400 + $0.40q
Equipment depreciation	$18,400 + $2.60q
Factory rent	$8,300
Property taxes	$2,800
Factory administration	$13,400 + $0.80q

The Production Department planned to work 4,400 labor-hours in March; however, it actually worked 4,200 labor-hours during the month. Its actual costs incurred in March are listed below:

	Actual Cost Incurred in March
Direct labor	$	71,360
Indirect labor	$	10,960
Utilities	$	8,730
Supplies	$	3,370
Equipment depreciation	$	29,320
Factory rent	$	8,700
Property taxes	$	2,800
Factory administration	$	16,150

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.