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	$16.20q
Indirect labor	$4,100 + $1.40q
Utilities	$5,300 + $0.70q
Supplies	$1,700 + $0.40q
Equipment depreciation	$18,400 + $2.90q
Factory rent	$8,500
Property taxes	$2,600
Factory administration	$13,300 + $0.70q

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	$	64,740
Indirect labor	$	9,020
Utilities	$	8,560
Supplies	$	3,550
Equipment depreciation	$	29,710
Factory rent	$	8,900
Property taxes	$	2,600
Factory administration	$	15,400

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.