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 $4,100 + $1.90q Utilities $5,700 + $0.50q Supplies $1,700 + $0.10q Equipment depreciation $18,400 + $2.40q Factory rent $8,600 Property taxes $2,600 Factory administration $13,600 + $0.70q 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 $ 65,970 Indirect labor $ 11,070 Utilities $ 8,140 Supplies $ 2,320 Equipment depreciation $ 27,760 Factory rent $ 9,000 Property taxes $ 2,600 Factory administration $ 15,700 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