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	$16.20q
Indirect labor	$4,400 + $1.60q
Utilities	$5,100 + $0.70q
Supplies	$1,400 + $0.30q
Equipment depreciation	$18,200 + $2.50q
Factory rent	$8,200
Property taxes	$2,900
Factory administration	$13,800 + $0.80q

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	$ 63,120
Indirect labor	$ 9,980
Utilities	$ 8,290
Supplies	$ 2,810
Equipment depreciation	$ 27,700
Factory rent	$ 8,600
Property taxes	$ 2,900
Factory administration	$ 16,230

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.