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	$16.10q
Indirect labor	$4,400 + $1.90q
Utilities	$5,500 + $0.90q
Supplies	$1,700 + $0.20q
Equipment depreciation	$18,000 + $2.70q
Factory rent	$8,500
Property taxes	$2,700
Factory administration	$13,300 + $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	$	64,330
Indirect labor	$	11,370
Utilities	$	9,580
Supplies	$	2,730
Equipment depreciation	$	28,530
Factory rent	$	8,900
Property taxes	$	2,700
Factory administration	$	15,400

1. Prepare the Production Departments flexible budget performance report for March, including both the spending and activity variances.