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 $4,100 + $1.50q Utilities $5,600 + $0.70q Supplies $1,600 + $0.20q Equipment depreciation $18,400 + $2.50q Factory rent $8,600 Property taxes $2,800 Factory administration $13,200 + $0.80q 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 $ 66,360 Indirect labor $ 9,580 Utilities $ 8,930 Supplies $ 2,650 Equipment depreciation $ 28,400 Factory rent $ 9,000 Property taxes $ 2,800 Factory administration $ 15,790 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.