Figure 16-5
Torino, SA -Refer to Figure 16-5

Figure 16-5
Torino, SA., manufactures machine parts. Torino has developed a static budget for its plant at an activity level of 10,000 direct labour hours for the month of March. The actual level of activity was 11,000 hours. The following table summarizes the static budget and the actual costs for March: $\begin{array}{lccc}&\text { Static Budget } &\text { Actual Costs }\\& (10,000 \mathrm{DLH}) & (11,000 \mathrm{DLH}) & \text {Variance}\\ \text { Variable costs } & £ 21,000 & £ 22,000 & £ 1,000 \mathrm{U} \\ \text { Fixed costs } & 7,800 & 7,700 & 100 \mathrm{~F} \\ \text { Total } & £ 28,800 & £ 29,700 & £ 900\mathrm{U} \\ \end{array}$
-Refer to Figure 16-5. What is the flexible budget variance for March?

A) £-0-
B) £1,200 F
C) £900 U
D) £1,100 F