Best-4-U Things Ltd. planned on producing 600 units for the year. However, actual production was 400 units. Information concerning the direct labour cost for Best-4-U Things Ltd. is as follows: actual results, 1,000 hours at $25 per hour; static budget amounts, 1,200 hours at $21 per hour. What is the Best-4-U Things Ltd. static-budget variance?

Question 7Select one:

a.

$200 U

b.

$400 U

c.

$400 F

d.

$200 F

e.

$600 F