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: Direct labor Indirect labor Utilities Cost Formulas $16.10g $4,500 $1.50g $5,800 + $0.40g Supplies $1,500+ $0.30q Equipment depreciation Factory rent $18, 100 +$3.00q $8,500 Property taxes Factory administration $2,900 $13,500 $0.80g The Production Department planned to work 4,400 labor-hours in March; however, it actually worked 4,200 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March Direct labor Indirect labor Utilities $ 69, 160 $ 10, 280 $ 7,950 Supplies $ 3,030 Equipment depreciation $ 30, 700 Factory rent $ 8,900 $ 2,900 $ 16,250 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.