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: Direct labor $ 16.40 q Indirect labor $ 4,200 + $ 1.40 q Utilities $ 5,800 + $ 0.40 q Supplies $ 1,500 + $ 0.30 q Equipment depreciation $ 18,100 + $ 2.60 q Factory rent $ 8,300 Property taxes $ 2,400 Factory administration $ 13,200 + $ 0.50 q The actual costs incurred in March in the Production Department are listed below: Actual Cost Incurred in March Direct labor $ 70,480 Indirect labor $ 9,540 Utilities $ 7,950 Supplies $ 3,030 Equipment depreciation $ 29,020 Factory rent $ 8,700 Property taxes $ 2,400 Factory administration $ 14,630 Required: 1. The company had budgeted for an activity level of 4,400 labor-hours in March. Complete the Production Departments planning budget for the month. 2. The company actually worked 4,200 labor-hours in March. Complete the Production Departments flexible budget for the month. 3. Complete the Production Departments flexible budget performance report for March, including both the spending and activity variances. (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.)