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	$16.20q
Indirect labor	$4,300 + $1.90q
Utilities	$5,000 + $0.70q
Supplies	$1,300 + $0.20q
Equipment depreciation	$18,200 + $2.60q
Factory rent	$8,500
Property taxes	$2,900
Factory administration	$13,200 + $0.70q

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	$	69,600
Indirect labor	$	11,840
Utilities	$	8,470
Supplies	$	2,390
Equipment depreciation	$	29,120
Factory rent	$	8,900
Property taxes	$	2,900
Factory administration	$	15,510

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.