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	$16.20q
Indirect labor	$4,400 + $1.80q
Utilities	$5,800 + $0.40q
Supplies	$1,400 + $0.20q
Equipment depreciation	$18,300 + $2.60q
Factory rent	$8,100
Property taxes	$3,000
Factory administration	$13,400 + $0.60q

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	$	66,360
Indirect labor	$	11,140
Utilities	$	7,870
Supplies	$	2,450
Equipment depreciation	$	28,700
Factory rent	$	8,500
Property taxes	$	3,000
Factory administration	$	15,150

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.