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 + $1.30q
Utilities	$5,100 + $0.80q
Supplies	$1,400 + $0.40q
Equipment depreciation	$18,000 + $2.60q
Factory rent	$8,100
Property taxes	$2,600
Factory administration	$13,000 + $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	$	65,970
Indirect labor	$	8,810
Utilities	$	8,770
Supplies	$	3,250
Equipment depreciation	$	28,140
Factory rent	$	8,500
Property taxes	$	2,600
Factory administration	$	14,280

Required:

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