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 + $1.50q
Utilities	$5,700 + $0.70q
Supplies	$1,400 + $0.40q
Equipment depreciation	$18,700 + $2.40q
Factory rent	$8,100
Property taxes	$2,600
Factory administration	$13,700 + $0.60q

The Production Department planned to work 4,300 labor-hours in March; however, it actually worked 4,100 labor-hours during the month. Its actual costs incurred in March are listed below:

	Actual Cost Incurred in March
Direct labor	$	69,700
Indirect labor	$	10,030
Utilities	$	9,100
Supplies	$	3,330
Equipment depreciation	$	28,540
Factory rent	$	8,500
Property taxes	$	2,600
Factory administration	$	15,510

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.