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 $16.30q Indirect labor $4,500 + $1.60q Utilities $5,200 + $0.80q Supplies $1,600 + $0.40q Equipment depreciation $18,100 + $2.70q Factory rent $8,300 Property taxes $2,900 Factory administration $13,300 + $0.70q 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 $ 63,520 Indirect labor $ 10,080 Utilities $ 8,790 Supplies $ 3,410 Equipment depreciation $ 28,360 Factory rent $ 8,700 Property taxes $ 2,900 Factory administration $ 15,330 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.