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	$4,200 + $1.90q
Utilities	$5,300 + $0.80q
Supplies	$1,600 + $0.40q
Equipment depreciation	$18,700 + $3.00q
Factory rent	$8,100
Property taxes	$2,700
Factory administration	$13,200 + $0.90q

The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 labor-hours during the month. Its actual costs incurred in March are listed below:

	Actual Cost Incurred in March
Direct labor	$	66,360
Indirect labor	$	11,360
Utilities	$	9,050
Supplies	$	3,490
Equipment depreciation	$	30,700
Factory rent	$	8,500
Property taxes	$	2,700
Factory administration	$	16,210

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.