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	$16.30q
Indirect labor	$4,800 + $1.90q
Utilities	$5,100 + $0.80q
Supplies	$1,600 + $0.20q
Equipment depreciation	$18,200 + $2.60q
Factory rent	$8,300
Property taxes	$2,500
Factory administration	$13,700 + $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	$	66,780
Indirect labor	$	11,960
Utilities	$	8,850
Supplies	$	2,650
Equipment depreciation	$	28,600
Factory rent	$	8,700
Property taxes	$	2,500
Factory administration	$	16,710

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.

For the Month Ended March 31
	Actual Results			Flexible Budget			Planning Budget
Labor-hours	4,000
Direct labor	$66,780
Indirect labor	11,960
Utilities	8,850
Supplies	2,650
Equipment depreciation	28,600
Factory rent	8,700
Property taxes	2,500
Factory administration	16,710
Total expense	$146,750