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	$16.50q
Indirect labor	$4,600 + $1.80q
Utilities	$5,600 + $0.70q
Supplies	$1,800 + $0.40q
Equipment depreciation	$18,000 + $2.50q
Factory rent	$8,500
Property taxes	$3,000
Factory administration	$13,700 + $0.50q

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	$	67,620
Indirect labor	$	11,340
Utilities	$	8,930
Supplies	$	3,690
Equipment depreciation	$	28,000
Factory rent	$	8,900
Property taxes	$	3,000
Factory administration	$	15,030

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.