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 + $1.30q
Utilities	$5,500 + $0.30q
Supplies	$1,600 + $0.20q
Equipment depreciation	$18,100 + $2.60q
Factory rent	$8,400
Property taxes	$2,600
Factory administration	$13,600 + $0.80q

The Production Department planned to work 4,500 labor-hours in March; however, it actually worked 4,300 labor-hours during the month. Its actual costs incurred in March are listed below:

	Actual Cost Incurred in March
Direct labor	$	71,670
Indirect labor	$	9,430
Utilities	$	7,240
Supplies	$	2,710
Equipment depreciation	$	29,280
Factory rent	$	8,800
Property taxes	$	2,600
Factory administration	$	16,430

Required:

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

2. Prepare the Production Departments flexible budget for the month.

3. Calculate the spending variances for all expense items.