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	$4,500 + $2.00q
Utilities	$5,800 + $0.50q
Supplies	$1,300 + $0.20q
Equipment depreciation	$18,700 + $2.60q
Factory rent	$8,300
Property taxes	$2,600
Factory administration	$13,100 + $0.80q

The Production Department planned to work 4,100 labor-hours in March; however, it actually worked 3,900 labor-hours during the month. Its actual costs incurred in March are listed below:

	Actual Cost Incurred in March
Direct labor	$	65,560
Indirect labor	$	11,880
Utilities	$	8,240
Supplies	$	2,330
Equipment depreciation	$	28,840
Factory rent	$	8,700
Property taxes	$	2,600
Factory administration	$	15,610

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.

Required 1Required 2Required 3 Prepare the Production Department's planning budget Packaging Solutions Corporation Production Department Planning Budget For the Month Ended March 31 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration lotal expense Required 1Required 2Required 3 Calculate the spending variances for all expense items. (Indicate the effect of each variance by selecting "F" fo for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Packaging Solutions Corporation Spending Variances For the Month Ended March 31 Actual Results Flexible Budget Spending Variances Labor-hours 3,900 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration lotal expense $65,560 11,880 8,240 2,330 28,840 8,700 2,600 15,610 $ 143,760