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	$4,000 + $1.70q
Utilities	$5,600 + $0.70q
Supplies	$1,500 + $0.30q
Equipment depreciation	$18,200 + $3.00q
Factory rent	$8,600
Property taxes	$2,500
Factory administration	$13,200 + $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	$	71,670
Indirect labor	$	10,830
Utilities	$	9,140
Supplies	$	3,060
Equipment depreciation	$	31,100
Factory rent	$	9,000
Property taxes	$	2,500
Factory administration	$	15,130

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.