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	$4,700 + $2.00q
Utilities	$5,600 + $0.60q
Supplies	$1,800 + $0.10q
Equipment depreciation	$18,200 + $2.60q
Factory rent	$8,100
Property taxes	$2,800
Factory administration	$13,000 + $0.60q

The Production Department planned to work 4,500 labor-hours in March; however, it actually worked 4,300 labor-hours during the month. Its actual costs incurred in March are listed below:

	Actual Cost Incurred in March
Direct labor	$ 72,570
Indirect labor	$ 12,880
Utilities	$ 8,690
Supplies	$ 2,460
Equipment depreciation	$ 29,380
Factory rent	$ 8,500
Property taxes	$ 2,800
Factory administration	$ 14,930

Required:

Prepare the Production Departments planning budget for the month.

Prepare the Production Departments flexible budget for the month.

Prepare the Production Departments flexible budget performance report for March, including both the spending and activity variances.

Prepare the Production Departments planning budget for the month.

Packaging Solutions Corporation
Production Department Planning Budget
For the Month Ended March 31
Direct labor
Indirect labor
Utilities
Supplies
Equipment depreciation
Factory rent
Property taxes
Factory administration
Total expense	$0

Prepare the Production Departments flexible budget for the month.

Packaging Solutions Corporation
Production Department Flexible Budget
For the Month Ended March 31
Direct labor
Indirect labor
Utilities
Supplies
Equipment depreciation
Factory rent
Property taxes
Factory administration
Total expense	$0