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 $16.109 $4,200 + $1.909 $5,300 + $0.909 Supplies $1,500+ $0.309 Equipment depreciation $18,000+ $2.609 Factory rent $8,100 $2,400 $13,700 + $0.50q Property taxes Factory administration 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: Direct labor Indirect labor Utilities Actual Cost Incurred in March $ 69,160 $ 11,740 $ 9,650 Supplies $ 3,030 Equipment depreciation $ 28,920 $ 8,500 $ 2,400 $ 15,130 Factory rent Property taxes Factory administration Required: 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.