What to do when your boss is a bully?

My boss is a complete bully. Whenever I make a mistake, rather than attempty to help me she tells me what an inconvenience I am to her and the department. I heard it every day last week. We are now must clock in and out for lunch (even though we are salary) and even though we are open 9-5 we are expected to work nights and weekends. My boss was filling in for another employee who was on maternity leave and therefore was not around for a few weeks, she told me that our department was "a chaotic mess" without her. I took much offense to the comment and shared it with a co-worker. The co-worker, also offended approached out boss and told her she did not appreciate the comment. The boss then came back to me and said that was the last time she would ever tell me anything in confidence, and not to trust any of my co-workers because they will rat me out in a heartbeat. That comment also offended me and a few days later I asked my co-worker who said when she told our boss she was told "a chaotic mess" was never said. The job is making me physically sick. Everyday I want to quit on the spot, but I am the sole provider in my family and cannot afford to do so. I've thought about going to our director but I'm afraid he'll tell her to knock it off and she'll make my life more miserable. It's also not just me she does it to everyone in my department and everyone else feels the same way, I guess they are just stronger. I find myself sobbing in the bathroom stahl by the end of the day. I have been frantically searching for a new job but it is not easy to get time off for job interviews. Any advice would be helpful.