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	$16.50q
Indirect labor	$4,700 + $2.00q
Utilities	$5,600 + $0.60q
Supplies	$1,800 + $0.10q
Equipment depreciation	$18,200 + $2.60q
Factory rent	$8,100
Property taxes	$2,800
Factory administration	$13,000 + $0.60q

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	$ 72,570
Indirect labor	$ 12,880
Utilities	$ 8,690
Supplies	$ 2,460
Equipment depreciation	$ 29,380
Factory rent	$ 8,500
Property taxes	$ 2,800
Factory administration	$ 14,930

Prepare the Production Departments flexible budget performance report for March, including both the spending and activity variances.

Note: 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.

Packaging Solutions Corporation
Production Department Flexible Budget Performance Report
For the Month Ended March 31
	Actual Results			Flexible Budget			Planning Budget
Labor-hours	4,300
Direct labor	$72,570
Indirect labor	12,880
Utilities	8,690
Supplies	2,460
Equipment depreciation	29,380
Factory rent	8,500
Property taxes	2,800
Factory administration	14,930
Total expense	$152,210