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	$4,200 + $1.50q
Utilities	$5,100 + $0.70q
Supplies	$1,700 + $0.40q
Equipment depreciation	$18,300 + $2.60q
Factory rent	$8,000
Property taxes	$2,800
Factory administration	$13,400 + $0.70q

The Production Department planned to work 4,100 labor-hours in March; however, it actually worked 3,900 labor-hours during the month. Its actual costs incurred in March are listed below:

	Actual Cost Incurred in March
Direct labor	$	64,330
Indirect labor	$	9,530
Utilities	$	8,360
Supplies	$	3,550
Equipment depreciation	$	28,440
Factory rent	$	8,400
Property taxes	$	2,800
Factory administration	$	15,500

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.