1. Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The budget for the Production Department is prepared based on the following formulas, where h is the number of labor-hours worked in a month. Actual data for March is also given in rightmost column when a total of 8,400 labor-hours were worked. Costs Formulas Actual (at 8,400 k) Sales $34 h 290,000 Direct labor $15.80 11 134,730 Indirect labor $8,200 + $1.60 11 19,860 Utilities $6,400 + $0.80 11 14,570 Supplies $1,100 + $0.40 12 4,980 Equipment depreciation $23,000 + $3.70 [4 54,080 Factory rent $8,400 8,700 Property taxes $2,100 2,100 Factory administration $11,700 + $1.90 h 26,470 Required: a) Based on the above data, prepare the revenue and spending variance for the month. b) Which variance from requirement a) should be brought to management's attention? Why