1) 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	$16.30q
Indirect labor	$4,400 + $1.90q
Utilities	$5,400 + $0.40q
Supplies	$1,600 + $0.40q
Equipment depreciation	$18,200 + $2.60q
Factory rent	$8,000
Property taxes	$2,700
Factory administration	$13,100 + $0.70q

The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 labor-hours during the month. Its actual costs incurred in March are listed below:

	Actual Cost Incurred in March
Direct labor	$	66,780
Indirect labor	$	11,560
Utilities	$	7,470
Supplies	$	3,490
Equipment depreciation	$	28,600
Factory rent	$	8,400
Property taxes	$	2,700
Factory administration	$	15,270

Required:

1a Prepare the Production Departments planning budget for the month.

1b. Prepare the Production Departments flexible budget for the month.

1c. Calculate the spending variances for all expense items.