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 $ 16.50 q Indirect labor $ 4,100 + $ 1.90 q Utilities $ 5,500 + $ 0.80 q Supplies $ 1,800 + $ 0.10 q Equipment depreciation $ 18,500 + $ 2.50 q Factory rent $ 8,500 Property taxes $ 2,900 Factory administration $ 13,200 + $ 0.60 q The actual costs incurred in March in the Production Department are listed below: Actual Cost Incurred in March Direct labor $ 67,620 Indirect labor $ 11,260 Utilities $ 9,250 Supplies $ 2,430 Equipment depreciation $ 28,500 Factory rent $ 8,900 Property taxes $ 2,900 Factory administration $ 14,950 Required: 1. The company had budgeted for an activity level of 4,200 labor-hours in March. Complete the Production Departments planning budget for the month. 2. The company actually worked 4,000 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.)