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	$16.40q
Indirect labor	$4,200 + $1.50q
Utilities	$5,700 + $0.30q
Supplies	$1,400 + $0.20q
Equipment depreciation	$18,200 + $2.80q
Factory rent	$8,200
Property taxes	$3,000
Factory administration	$13,600 + $0.90q

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	$	68,840
Indirect labor	$	9,830
Utilities	$	7,380
Supplies	$	2,470
Equipment depreciation	$	29,680
Factory rent	$	8,600
Property taxes	$	3,000
Factory administration	$	16,700

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.