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	$16.60q
Indirect labor	$4,400 + $1.40q
Utilities	$5,400 + $0.30q
Supplies	$1,400 + $0.20q
Equipment depreciation	$18,800 + $2.60q
Factory rent	$8,200
Property taxes	$2,600
Factory administration	$13,600 + $0.60q

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	$	9,740
Utilities	$	7,110
Supplies	$	2,490
Equipment depreciation	$	29,720
Factory rent	$	8,600
Property taxes	$	2,600
Factory administration	$	15,470

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.