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

$4,000 + $2.00q

Utilities

$5,500 + $0.30q

Supplies

$1,600 + $0.20q

Equipment depreciation

$18,300 + $2.90q

Factory rent

$8,400

Property taxes

$2,900

Factory administration

$13,500 + $0.50q

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	$	11,580
Utilities	$	7,150
Supplies	$	2,650
Equipment depreciation	$	29,900
Factory rent	$	8,800
Property taxes	$	2,900
Factory administration	$	14,830

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	11,580
Utilities	7,150
Supplies	2,650
Equipment depreciation	29,900
Factory rent	8,800
Property taxes	2,900
Factory administration	14,830
Total expense	$144,170