Jason 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 22,000 direct labor hours. Data for the first quarter are summarized as follows:

	Static budget (20,000 hours)	Actual costs (22,000 hours)
Direct materials cost	$ 80,000	$ 87,000
Direct labor cost	160,000	174,000
Building rental	48,000	50,000
Total	$288,000	$311,000

What is the flexible budget variance for the first quarter?

a.$1,000 F

b.$1,000 U

c.$23,000 F

d.$23,000 U

e.None of these choices are correct.