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	$4,100 + $1.80q
Utilities	$5,100 + $0.60q
Supplies	$1,700 + $0.40q
Equipment depreciation	$18,300 + $2.80q
Factory rent	$8,200
Property taxes	$2,500
Factory administration	$13,500 + $0.50q

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	$	10,840
Utilities	$	8,010
Supplies	$	3,590
Equipment depreciation	$	29,500
Factory rent	$	8,600
Property taxes	$	2,500
Factory administration	$	14,830

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.

Required 1 Required 2 Required 3 Prepare the Production Department's flexib Packaging Solutions Corporation Production Department Flexible Budget For the Month Ended March 31 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense $ 0 Packaging Solutions Corporation Production Department Flexible Budget Performance Report For the Month Ended March 31 Actual Flexible Results Budget 4,000 Planning Budget Labor-hours $ 67,620 10,840 8,010 3,590 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense 29,500 8,600 2,500 14,830 $ 145,490