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 $15.80q Direct labor $6,400$0.80q $8,400 $2,100 The actual costs incurred in March in the Production Department are listed below Actual Cost Incurred in March $134,730 Direct labor $19,860 $14,570 $4,980 $54,080 $8,700 $2,100 $26,470 Factory administration Hequirea: 1. The company had budgeted for an activity level of 8,000 labor- hours in March. Prepare the Production Department's planning budget for the month 2. The company actually worked 8,400 labor-hours in March Prepare the Production Department's flexible budget for the month 3. Prepare the Production Department's flexible budget performance report for March, including both the spending and activity variances 4. What aspects of the flexible budget performance report should be brought to management's attention? Explain