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 $16.40q Indirect labor $4,600 + $1.80q Utilities $5,200 + $0.40q Supplies $1,800 + $0.20q Equipment depreciation $18,600 + $2.50q Factory rent $8,200 Property taxes $2,700 Factory administration $13,200 + $0.70q

The Production Department planned to work 4,000 labor-hours in March; however, it actually worked 3,800 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March Direct labor $ 63,920 Indirect labor $ 10,980 Utilities $ 7,190 Supplies $ 2,810 Equipment depreciation $ 28,100 Factory rent $ 8,600 Property taxes $ 2,700 Factory administration $ 15,230

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