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				$	16.30	q
Indirect labor	$	4,600	+	$	1.90	q
Utilities	$	5,600	+	$	0.70	q
Supplies	$	1,200	+	$	0.20	q
Equipment depreciation	$	18,500	+	$	2.80	q
Factory rent				$	8,200
Property taxes				$	2,900
Factory administration	$	13,500	+	$	0.70	q

The actual costs incurred in March in the Production Department are listed below:

	Actual Cost Incurred in March
Direct labor	$	65,150
Indirect labor	$	11,570
Utilities	$	8,860
Supplies	$	2,230
Equipment depreciation	$	29,420
Factory rent	$	8,600
Property taxes	$	2,900
Factory administration	$	15,600

Required:
1.	The company had budgeted for an activity level of 4,100 labor-hours in March. Complete the Production Departments planning budget for the month.

2.	The company actually worked 3,900 labor-hours in March. Complete the Production Departments flexible budget for the month.

3.	Calculate the spending variances for all expense items. (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.)