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	$4,400 + $1.70q
Utilities	$5,600 + $0.80q
Supplies	$1,800 + $0.20q
Equipment depreciation	$18,700 + $3.10q
Factory rent	$8,000
Property taxes	$2,600
Factory administration	$13,500 + $0.60q

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	$	10,550
Utilities	$	9,270
Supplies	$	2,830
Equipment depreciation	$	30,790
Factory rent	$	8,400
Property taxes	$	2,600
Factory administration	$	15,190

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.