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	$4,200 + $1.40q
Utilities	$5,200 + $0.40q
Supplies	$1,300 + $0.10q
Equipment depreciation	$18,400 + $2.80q
Factory rent	$8,300
Property taxes	$2,800
Factory administration	$13,300 + $0.50q

The Production Department planned to work 4,400 labor-hours in March; however, it actually worked 4,200 labor-hours during the month. Its actual costs incurred in March are listed below:

	Actual Cost Incurred in March
Direct labor	$	70,920
Indirect labor	$	9,540
Utilities	$	7,350
Supplies	$	1,950
Equipment depreciation	$	30,160
Factory rent	$	8,700
Property taxes	$	2,800
Factory administration	$	14,730

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.