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	$16.30q
Indirect labor	$4,700 + $1.40q
Utilities	$5,400 + $0.80q
Supplies	$1,800 + $0.30q
Equipment depreciation	$18,600 + $2.40q
Factory rent	$8,100
Property taxes	$2,400
Factory administration	$13,300 + $0.60q

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 March
Direct labor	$	65,150
Indirect labor	$	9,620
Utilities	$	9,070
Supplies	$	3,240
Equipment depreciation	$	27,960
Factory rent	$	8,500
Property taxes	$	2,400
Factory administration	$	14,990

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.