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	$16.50q
Indirect labor	$4,000 + $1.90q
Utilities	$5,600 + $0.50q
Supplies	$1,500 + $0.20q
Equipment depreciation	$18,100 + $2.40q
Factory rent	$8,300
Property taxes	$2,900
Factory administration	$13,000 + $0.70q

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	$	64,320
Indirect labor	$	10,780
Utilities	$	7,990
Supplies	$	2,510
Equipment depreciation	$	27,220
Factory rent	$	8,700
Property taxes	$	2,900
Factory administration	$	15,030

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.