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 $16.20q Indirect labor $4,200 + $2.10q Utilities $5,000 + $0.50q Supplies $1,300 + $0.20q Equipment depreciation $18,300 + $2.90q Factory rent $8,300 Property taxes $2,700 Factory administration $13,400 + $0.60q The Production Department planned to work 4,400 labor-hours in March; however, it actually worked 4,200 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March Direct labor $ 69,600 Indirect labor $ 12,620 Utilities $ 7,590 Supplies $ 2,390 Equipment depreciation $ 30,480 Factory rent $ 8,700 Property taxes $ 2,700 Factory administration $ 15,270 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.