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	$4,600 + $1.60q
Utilities	$5,700 + $0.90q
Supplies	$1,200 + $0.20q
Equipment depreciation	$18,800 + $2.90q
Factory rent	$8,100
Property taxes	$2,500
Factory administration	$13,200 + $0.80q

The Production Department planned to work 4,100 labor-hours in March; however, it actually worked 3,900 labor-hours during the month. Its actual costs incurred in March are listed below:

	Actual Cost Incurred in March
Direct labor	$	66,380
Indirect labor	$	10,340
Utilities	$	9,780
Supplies	$	2,230
Equipment depreciation	$	30,110
Factory rent	$	8,500
Property taxes	$	2,500
Factory administration	$	15,710

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.