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	$4,000 + $1.90q
Utilities	$5,100 + $0.50q
Supplies	$1,200 + $0.40q
Equipment depreciation	$18,500 + $2.70q
Factory rent	$8,200
Property taxes	$2,400
Factory administration	$13,700 + $0.70q

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 March
Direct labor	$	70,480
Indirect labor	$	11,540
Utilities	$	7,690
Supplies	$	3,170
Equipment depreciation	$	29,840
Factory rent	$	8,600
Property taxes	$	2,400
Factory administration	$	16,010

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.