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, whereqis the number of labor-hours worked in a month:

Cost FormulasDirect labor$16.60qIndirect labor$4,600 + $1.50qUtilities$5,500 + $0.30qSupplies$1,400 + $0.10qEquipment depreciation$18,400 + $3.00qFactory rent$8,200Property taxes$2,400Factory administration$13,700 + $0.90q

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:

Actual Cost Incurred in MarchDirect labor$66,380Indirect labor$9,930Utilities$7,120Supplies$2,020Equipment depreciation$30,100Factory rent$8,600Property taxes$2,400Factory administration$16,620

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.

Required 1 Required 2 Required 3 Prepare the Production Department's planning budget for the month. Packaging Solutions Corporation Production Department Planning Budget For the Month Ended March 31 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expense $ 0Required 1 Required 2 Required 3 Prepare the Production Department's flexible budget for Packaging Solutions Corporation Production Department Flexible Budget For the Month Ended March 31 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expenseRequired 1 Required 2 Required 3 Calculate the spending variances for all expense items. (Indicate the effect of each variance for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive Packaging Solutions Corporation Spending Variances For the Month Ended March 31 Actual Spending Variances Flexible Results Budget Labor-hours 3,900 Direct labor $ 66,380 Indirect labor 9,930 Utilities 7,120 Supplies 2,020 Equipment depreciation 30, 100 Factory rent 8,600 Property taxes 2,400 Factory administration 16,620Property taxes 2,400 Factory administration 16,620 Total expense $ 143, 170