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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	$	4,200	+	$	1.80	q
Utilities	$	5,400	+	$	0.80	q
Supplies	$	1,600	+	$	0.30	q
Equipment depreciation	$	18,400	+	$	2.60	q
Factory rent				$	8,100
Property taxes				$	2,400
Factory administration	$	13,800	+	$	0.90	q

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

	Actual Cost Incurred in March
Direct labor	$	70,920
Indirect labor	$	11,300
Utilities	$	9,310
Supplies	$	3,130
Equipment depreciation	$	29,320
Factory rent	$	8,500
Property taxes	$	2,400
Factory administration	$	16,990

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.	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.)

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