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	$4,300 + $2.00q
Utilities	$5,400 + $0.70q
Supplies	$1,400 + $0.20q
Equipment depreciation	$18,400 + $2.80q
Factory rent	$8,100
Property taxes	$2,600
Factory administration	$13,600 + $0.70q

The Production Department planned to work 4,500 labor-hours in March; however, it actually worked 4,300 labor-hours during the month. Its actual costs incurred in March are listed below:

	Actual Cost Incurred in March
Direct labor	$	72,570
Indirect labor	$	12,480
Utilities	$	8,940
Supplies	$	2,510
Equipment depreciation	$	30,440
Factory rent	$	8,500
Property taxes	$	2,600
Factory administration	$	15,980

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.