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	$16.20q
Indirect labor	$4,500 + $1.80q
Utilities	$5,100 + $0.40q
Supplies	$1,300 + $0.40q
Equipment depreciation	$18,500 + $2.60q
Factory rent	$8,000
Property taxes	$2,500
Factory administration	$13,400 + $0.70q

The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 labor-hours during the month. Its actual costs incurred in March are listed below:

	Actual Cost Incurred in March
Direct labor	$	66,360
Indirect labor	$	11,240
Utilities	$	7,170
Supplies	$	3,190
Equipment depreciation	$	28,900
Factory rent	$	8,400
Property taxes	$	2,500
Factory administration	$	15,570

Prepare 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.)

Packaging Solutions Corporation
Production Department Flexible Budget Performance Report
For the Month Ended March 31
	Actual Results			Flexible Budget			Planning Budget
Labor-hours	4,000
Direct labor	$66,360
Indirect labor	11,240
Utilities	7,170
Supplies	3,190
Equipment depreciation	28,900
Factory rent	8,400
Property taxes	2,500
Factory administration	15,570
Total expense	$143,330