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	$4,500 + $1.70q
Utilities	$5,000 + $0.70q
Supplies	$1,500 + $0.20q
Equipment depreciation	$18,700 + $3.10q
Factory rent	$8,400
Property taxes	$2,700
Factory administration	$13,700 + $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	$	11,160
Utilities	$	8,470
Supplies	$	2,590
Equipment depreciation	$	31,720
Factory rent	$	8,800
Property taxes	$	2,700
Factory administration	$	15,570

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.