Question - All Good Things Ltd. planned on producing 600 units for the year. However, the actual production was 400 units. Information concerning the direct labour costs for All Good Things Ltd. is as follows: actual results 1,000 hour at $25 per hour; static budget amounts were 1,200 hours at $21 per hour.
a) What is the All Goods Things Ltd. static budget variance?
b) What is the All Good Things Ltd. flexible budget variance?