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: Direct labor Indirect labor Utilities Cost Formulas $16.60q $4,600 +$1.40q $5,700 + $0.50q Supplies $1,500 + $0.20q Equipment depreciation $18,100 + $2.80q Factory rent $8,200 Property taxes Factory administration $2,900 $13,400 + $0.709 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 $ 71,360 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Required: $ 9,940 $ 8,290 $ 2,590 $ 29,860 $ 8,600 $ 2,900 $ 15,710 1. Prepare the Production Department's planning budget for the month. 2. Prepare the Production Department's flexible budget for the month. 3. Calculate the spending variances for all expense items.