Triway Packaging 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 direct labor-hours worked in a month:

Direct labor . . . . . . . . . . . . . . . . . . . . .$16.30q
Indirect labor. . . . . . . . . . . . . . . . . . . .$4,300 + $1.80q
Utilities . . . . . . . . . . . . . . . . . . . . . . . . $5,600 + $0.70q
Supplies . . . . . . . . . . . . . . . . . . . . . . .$1,400 + $0.30q
Equipment depreciation . . . . . . . . . . . $18,600 + $2.80q
Factory rent . . . . . . . . . . . . . . . . . . . . $8,300
Property taxes . . . . . . . . . . . . . . . . . .$2,800
Factory administration . . . . . . . . . . . . $13,400 + $0.90q

The actual costs incurred in November in the Production Department are listed below:

Actual Cost Incurredin November
Direct labor . . . . . . . . . . . . . . . . . . . . .$63,520
Indirect labor. . . . . . . . . . . . . . . . . . . .$10,680
Utilities . . . . . . . . . . . . . . . . . . . . . . . . . $8,790
Supplies . . . . . . . . . . . . . . . . . . . . . . ..$2,810
Equipment depreciation . . . . . . . . . . . . $29,240
Factory rent . . . . . . . . . . . . . . . . . . . ..$8,700
Property taxes . . . . . . . . . . . . . . . . . .. $2,800
Factory administration . . . . . . . . . . . . . $16,230

Required: 

1. The company had budgeted for an activity level of 4,000 labor-hours in November. Prepare the Production Department's planning budget for the month. 

2. The company actually worked 3,800 labor-hours in November. Prepare the Production Department's flexible budget for the month. 

3. Prepare the Production Department's flexible budget performance report for November, including both the activity and spending variances. 

4. What aspects of the flexible budget performance report should be brought to management's attention? Explain.