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	$16.40q
Indirect labor	$4,000 + $1.80q
Utilities	$5,700 + $0.80q
Supplies	$1,700 + $0.40q
Equipment depreciation	$18,200 + $2.80q
Factory rent	$8,500
Property taxes	$2,500
Factory administration	$13,300 + $0.70q

The Production Department planned to work 4,000 labor-hours in March; however, it actually worked 3,800 labor-hours during the month. Its actual costs incurred in March are listed below:

	Actual Cost Incurred in March
Direct labor	$	63,920
Indirect labor	$	10,380
Utilities	$	9,290
Supplies	$	3,510
Equipment depreciation	$	28,840
Factory rent	$	8,900
Property taxes	$	2,500
Factory administration	$	15,330

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.