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	$16.20q
Indirect labor	$4,300 + $1.50q
Utilities	$5,300 + $0.90q
Supplies	$1,400 + $0.40q
Equipment depreciation	$18,400 + $2.80q
Factory rent	$8,300
Property taxes	$3,000
Factory administration	$13,500 + $0.90q

The Production Department planned to work 4,500 labor-hours in March; however, it actually worked 4,300 labor-hours during the month. Its actual costs incurred in March are listed below:

	Actual Cost Incurred in March
Direct labor	$ 71,220
Indirect labor	$ 10,230
Utilities	$ 9,740
Supplies	$ 3,410
Equipment depreciation	$ 30,440
Factory rent	$ 8,700
Property taxes	$ 3,000
Factory administration	$ 16,780

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.