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	$4,800 + $1.90q
Utilities	$5,500 + $0.70q
Supplies	$1,300 + $0.30q
Equipment depreciation	$18,300 + $2.90q
Factory rent	$8,000
Property taxes	$2,800
Factory administration	$13,300 + $0.90q

The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 labor-hours during the month. Its actual costs incurred in March are listed below:

	Actual Cost Incurred in March
Direct labor	$	67,620
Indirect labor	$	11,960
Utilities	$	8,830
Supplies	$	2,770
Equipment depreciation	$	29,900
Factory rent	$	8,400
Property taxes	$	2,800
Factory administration	$	16,310

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.