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	$16.40q
Indirect labor	$4,700 + $1.60q
Utilities	$5,400 + $0.60q
Supplies	$1,800 + $0.10q
Equipment depreciation	$18,400 + $2.80q
Factory rent	$8,400
Property taxes	$2,500
Factory administration	$13,100 + $0.60q

The Production Department planned to work 4,000 labor-hours in March; however, it actually worked 3,800 labor-hours during the month. Its actual costs incurred in March are listed below:

	Actual Cost Incurred in March
Direct labor	$	63,920
Indirect labor	$	10,280
Utilities	$	8,190
Supplies	$	2,410
Equipment depreciation	$	29,040
Factory rent	$	8,800
Property taxes	$	2,500
Factory administration	$	14,730

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.