The planning flexible budgets for the Production Department are based on the cost formulas, where q is the number of labor-hours worked in a month:

The department planned to work 4,500 labor-hours in March; however, it actually worked 4,300 labor-hours. Its actual costs are listed below:

Prepare the flexible budget performance report for March, including both the spending and activity variances

Cost Formulas

Actual Cost Incurred in March

Direct labor

$16.20q

Direct labor

71,220

Indirect labor

$4,700 + $1.60q

Indirect labor

11,080

Utilities

$5,700 + $0.50q

Utilities

8,340

Supplies

$1,500 + $0.20q

Supplies

2,610

Equipment depreciation

$18,300 + $2.90q

Equipment depreciation

30,770

Factory rent

$8,300

Factory rent

8,700

Property taxes

$2,900

Property taxes

2,900

Factory administration

$13,100 + $0.60q

Factory administration

15,030