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	$4,500 + $1.70q
Utilities	$5,100 + $0.60q
Supplies	$1,500 + $0.10q
Equipment depreciation	$18,100 + $2.70q
Factory rent	$8,500
Property taxes	$3,000
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

	Actual Cost Incurred in March
Direct labor	$	67,200
Indirect labor	$	10,820
Utilities	$	8,010
Supplies	$	2,130
Equipment depreciation	$	28,900
Factory rent	$	8,900
Property taxes	$	3,000
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.