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 $16.30q Indirect labor $4,100 + $1.80q Utilities $5,200 + $0.90q Supplies $1,500 + $0.40q Equipment depreciation $18,000 + $3.00q Factory rent $8,300 Property taxes $2,400 Factory administration $13,600 + $0.80q The Production Department planned to work 4,300 labor-hours in March; however, it actually worked 4,100 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March Direct labor $ 68,410 Indirect labor $ 11,020 Utilities $ 9,460 Supplies $ 3,430 Equipment depreciation $ 30,300 Factory rent $ 8,700 Property taxes $ 2,400 Factory administration $ 16,270 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.