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	$16.60q
Indirect labor	$4,300 + $1.40q
Utilities	$5,100 + $0.30q
Supplies	$1,600 + $0.40q
Equipment depreciation	$18,700 + $2.50q
Factory rent	$8,400
Property taxes	$2,500
Factory administration	$13,600 + $0.60q

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	$	66,380
Indirect labor	$	9,220
Utilities	$	6,720
Supplies	$	3,450
Equipment depreciation	$	28,450
Factory rent	$	8,800
Property taxes	$	2,500
Factory administration	$	15,290

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.