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	$16.50q
Indirect labor	$4,300 + $1.40q
Utilities	$5,300 + $0.80q
Supplies	$1,800 + $0.30q
Equipment depreciation	$18,500 + $2.60q
Factory rent	$8,200
Property taxes	$2,800
Factory administration	$13,500 + $0.80q

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	$	69,270
Indirect labor	$	9,500
Utilities	$	9,130
Supplies	$	3,300
Equipment depreciation	$	29,160
Factory rent	$	8,600
Property taxes	$	2,800
Factory administration	$	16,170

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.