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	$4,700 + $1.60q
Utilities	$5,200 + $0.70q
Supplies	$1,400 + $0.10q
Equipment depreciation	$18,400 + $2.50q
Factory rent	$8,600
Property taxes	$2,800
Factory administration	$13,100 + $0.70q

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	$	10,440
Utilities	$	8,460
Supplies	$	2,020
Equipment depreciation	$	28,150
Factory rent	$	9,000
Property taxes	$	2,800
Factory administration	$	15,200

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.