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	$16.50q
Indirect labor	$4,600 + $1.50q
Utilities	$5,200 + $0.40q
Supplies	$1,700 + $0.30q
Equipment depreciation	$18,700 + $3.00q
Factory rent	$8,300
Property taxes	$3,000
Factory administration	$13,200 + $0.70q

The Production Department planned to work 4,400 labor-hours in March; however, it actually worked 4,200 labor-hours during the month. Its actual costs incurred in March are listed below:

	Actual Cost Incurred in March
Direct labor	$	70,920
Indirect labor	$	10,380
Utilities	$	7,350
Supplies	$	3,230
Equipment depreciation	$	31,300
Factory rent	$	8,700
Property taxes	$	3,000
Factory administration	$	15,510

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.