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	$16.60q
Indirect labor	$4,300 + $2.10q
Utilities	$5,200 + $0.70q
Supplies	$1,600 + $0.30q
Equipment depreciation	$18,100 + $3.00q
Factory rent	$8,100
Property taxes	$2,600
Factory administration	$13,600 + $0.60q

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	$	68,040
Indirect labor	$	12,300
Utilities	$	8,530
Supplies	$	3,070
Equipment depreciation	$	30,100
Factory rent	$	8,500
Property taxes	$	2,600
Factory administration	$	15,350

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.