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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	$16.60q
Indirect labor	$4,200 + $2.00q
Utilities	$5,300 + $0.60q
Supplies	$1,400 + $0.10q
Equipment depreciation	$18,200 + $3.00q
Factory rent	$8,300
Property taxes	$2,700
Factory administration	$13,400 + $0.60q

The Production Department planned to work 4,300 labor-hours in March; however, it actually worked 4,100 labor-hours during the month. Its actual costs incurred in March are listed below:

	Actual Cost Incurred in March
Direct labor	$ 69,700
Indirect labor	$ 11,980
Utilities	$ 8,270
Supplies	$ 2,040
Equipment depreciation	$ 30,500
Factory rent	$ 8,700
Property taxes	$ 2,700
Factory administration	$ 15,210

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.

Complete this question by entering your answers in the tabs below. Prepare the Production Department's planning budget for the month. Prepare the Production Department's flexible budget for the month. Calculate the spending variances for all expense items. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

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