ABC, Inc. produces leather purses. Jason has developed a static budget for the first quarter, based on 20,000 direct labor hours. During the quarter, the actual activity was 23,000 direct labor hours. Data for the first quarter are summarized as follows:

	Static budget (20,000 hours)	Actual costs (23,000 hours)
Direct materials cost	$ 100,000	$ 100,000
Direct labor cost	240,000	253 ,000
Building rental (fixed)	50,000	56,000
Total	$390,000	$409,000

Required:

1. What is the flexible budget amount for the three costs for the first quarter?

2. What is the flexible budget variance for the three costs for the first quarter?