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	$4,400 + $1.70q
Utilities	$5,500 + $0.50q
Supplies	$1,300 + $0.20q
Equipment depreciation	$18,400 + $3.00q
Factory rent	$8,600
Property taxes	$2,900
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	$ 70,480
Indirect labor	$ 11,060
Utilities	$ 8,090
Supplies	$ 2,390
Equipment depreciation	$ 31,000
Factory rent	$ 9,000
Property taxes	$ 2,900
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.