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 $4,400 + $1.60q Utilities $5,300 + $0.80q Supplies $1,600 + $0.30q Equipment depreciation $18,700 + $2.40q Factory rent $8,500 Property taxes $2,800 Factory administration $13,200 + $0.50q 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 $ 10,780 Utilities $ 9,290 Supplies $ 3,160 Equipment depreciation $ 29,020 Factory rent $ 8,900 Property taxes $ 2,800 Factory administration $ 14,680 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.