Suppose you are a cost accountant at M&M. Below is the information on direct labor for March:

Direct labor hours worked (AQ)		34,000
Standard direct labor hours for units manufactured (SQ)		36,000
Unfavorable direct labor rate variance	$	13,600
Total payroll for direct labor	$	462,400

1. (3 points) What was the total direct labor flexible-budget variance in March? (Rounded to the nearest dollar.)

$ (Click to select) unfavorable favorable

2. (5 points) Following the interpretations in the lecture videos, how will you analyze and explain the above variance to the company? Briefly show your work and reasoning.