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 $4,400 + $2.10q Utilities $5,200 + $0.60q Supplies $1,500 + $0.30q Equipment depreciation $18,800 + $2.70q Factory rent $8,200 Property taxes $2,800 Factory administration $13,700 + $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 $ 12,190 Utilities $ 8,050 Supplies $ 2,940 Equipment depreciation $ 29,330 Factory rent $ 8,600 Property taxes $ 2,800 Factory administration $ 15,800 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.