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 FormulasDirect labor$16.20qIndirect labor$4,000 + $1.60qUtilities$5,400 + $0.40qSupplies$1,700 + $0.30qEquipment depreciation$18,700 + $3.10qFactory rent$8,200Property taxes$2,500Factory administration$13,300 + $0.70q

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 MarchDirect labor$ 67,980Indirect labor$ 10,060Utilities$ 7,510Supplies$ 3,200Equipment depreciation$ 31,410Factory rent$ 8,600Property taxes$ 2,500Factory administration$ 15,540

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.