In Rooney Company, direct labor is $20 per hour. The company expects to operate at 12,000 direct labor hours each month. In January 2017, direct labor totaling $239,700 is incurred in working 12,500 hours.

Prepare a static budget report.

ROONEY COMPANY Static Direct Labor Budget Report For the Month Ended January 31, 2017
Product Line		Budget		Actual		Difference
Direct Labor		$		$		$	Favorable (correct)

Prepare a flexible budget report.

ROONEY COMPANY Flexible Direct Labor Budget Report For the Month Ended January 31, 2017
Product Line		Budget		Actual		Difference
Direct Labor		$		$		$	Favorable (correct)