1. The standard direct labor hours to produce a unit of product is 1.5 hours and the standard direct labor wage is $10 per hour. Actual units produced were 100 and the actual direct labor hours used was 120 hours and the total direct labor costs was $1320. Calculate all the DL variances.

2. How to prepare and use a flexible budget.

3. How the flexible budget differs from the static (master budget). When and why we use a flexible budget instead of a static budget

4. Be able to prepare a performance report and identify favorable and unfavorable variance.