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 + $1.40q Utilities $5,400 + $0.30q Supplies $1,500 + $0.20q Equipment depreciation $18,700 + $2.60q Factory rent $8,100 Property taxes $2,500 Factory administration $13,200 + $0.60q 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 $ 70,040 Indirect labor $ 9,940 Utilities $ 7,110 Supplies $ 2,590 Equipment depreciation $ 29,620 Factory rent $ 8,500 Property taxes $ 2,500 Factory administration $ 15,070 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.