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	$16.50q
Indirect labor	$4,600 + $2.10q
Utilities	$5,400 + $0.60q
Supplies	$1,500 + $0.30q
Equipment depreciation	$18,800 + $2.70q
Factory rent	$8,500
Property taxes	$2,800
Factory administration	$13,300 + $0.50q

The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 labor-hours during the month. Its actual costs incurred in March are listed below:

	Actual Cost Incurred in March
Direct labor	$	67,620
Indirect labor	$	12,600
Utilities	$	8,310
Supplies	$	2,970
Equipment depreciation	$	29,600
Factory rent	$	8,900
Property taxes	$	2,800
Factory administration	$	14,630

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.

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