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 $15.80q $8,200 $1.60g $6,400 $0.80q $1,100 $0.40q $23,000 $3.70g $8,400 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration $2,100 $11,700$1.90g The Production Department planned to work 8,000 labor-hours in March; however, it actually worked 8,400 labor-hours during the month. Its actual costs incurred in March are listed below Actual Cost Incurred in March Direct labor $134,730 $ 19,860 $14,570 $4,980 $ 54,080 $ 8,700 $ 2,100 $ 26,470 Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Required: 1. Prepare the Production Department's planning budget for the month 2. Prepare the Production Department's flexible budget for the month. 3. Calculate the spending variances for all expense items. Calculate the spending variances for all expense items. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Packaging Solutions Corporation Spending Variances For the Month Ended March 31 Actual Flexible Spending Variances Results Budget Labor-hours 8,400 $ Direct labor 134,730 Indirect labor 19,860 Utilities 14,570 Supplies 4,980 Equipment depreciation 54,080 Factory rent 8,700 Property taxes 2,100 26,470 Factory administration $ Total expense 265,490