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	$16.40q
Indirect labor	$4,700 + $1.90q
Utilities	$5,200 + $0.50q
Supplies	$1,700 + $0.30q
Equipment depreciation	$18,700 + $2.90q
Factory rent	$8,500
Property taxes	$2,800
Factory administration	$13,500 + $0.80q

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	$ 67,200
Indirect labor	$ 11,860
Utilities	$ 7,690
Supplies	$ 3,170
Equipment depreciation	$ 30,300
Factory rent	$ 8,900
Property taxes	$ 2,800
Factory administration	$ 16,090

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.