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	$16.20q
Indirect labor	$4,400 + $1.60q
Utilities	$5,500 + $0.90q
Supplies	$1,500 + $0.40q
Equipment depreciation	$18,700 + $2.40q
Factory rent	$8,200
Property taxes	$2,900
Factory administration	$13,200 + $0.50q

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	$ 64,740
Indirect labor	$ 10,140
Utilities	$ 9,580
Supplies	$ 3,350
Equipment depreciation	$ 28,060
Factory rent	$ 8,600
Property taxes	$ 2,900
Factory administration	$ 14,480

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.