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, whereqis the number of labor-hours worked in a month:

Cost Formulas Direct labor$16.40q Indirect labor $4,400 + $1.80q Utilities $5,300 + $0.60q Supplies $1,500 + $0.30q Equipment depreciation $18,600 + $3.10q Factory rent $8,400 Property taxes $2,500 Factory administration $13,700 + $0.80q

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 MarchDirect labor$70,480Indirect labor$11,500Utilities$8,330Supplies$3,030Equipment depreciation$31,620Factory rent$8,800Property taxes$2,500Factory administration$16,450

Required:

1. Prepare the Production Department's planning budget for the month.

2. Prepare the Production Department's flexible budget for the month.

3. Prepare the Production Department's flexible budget performance report for March, including both the spending and activity variances.