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	$16.30q
Indirect labor	$4,600 + $2.10q
Utilities	$5,100 + $0.50q
Supplies	$1,200 + $0.40q
Equipment depreciation	$18,600 + $2.80q
Factory rent	$8,100
Property taxes	$2,600
Factory administration	$13,100 + $0.60q

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	$	65,150
Indirect labor	$	12,390
Utilities	$	7,540
Supplies	$	3,050
Equipment depreciation	$	29,520
Factory rent	$	8,500
Property taxes	$	2,600
Factory administration	$	14,790

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.