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 Cost Formulas $16.409 Indirect labor Utilities $4,500 + $1.70q $5,700 + $0.409 Supplies $1,400 + $0.209 Equipment depreciation $18,300 + $2.909 Factory rent $8,100 $2,900 Property taxes Factory administration $13,300 + $0.709 The Production Department planned to work 4,100 labor-hours in March; however, it actually worked 3,900 labor-hours during the month. Its actual costs incurred in March are listed below: Direct labor Indirect labor Actual Cost Incurred in March $ 65,560 $ 10,650 Utilities $ 7,730 Supplies $ 2,430 Equipment depreciation $ 29,610 $ 8,500 $ 2,900 $ 15,400 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.