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 $16.10q Indirect labor $4,100 + $2.00q Utilities $5,800 + $0.30q Supplies $1,700 + $0.30q Equipment depreciation $18,600 + $2.50q Factory rent $8,500 Property taxes $2,800 Factory administration $13,100 + $0.70q The Production Department planned to work 4,300 labor-hours in March; however, it actually worked 4,100 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March Direct labor $ 67,550 Indirect labor $ 11,880 Utilities $ 7,480 Supplies $ 3,200 Equipment depreciation $ 28,850 Factory rent $ 8,900 Property taxes $ 2,800 Factory administration $ 15,340 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.