Honolulu Hello produces pineapple candy. The company currently uses a static budget process. The company’s controller prepared the following budget for April’s production:
Estimated production .............. 24,000 boxes
Direct labor per box ................ 4 minutes
Direct labor required for estimated production .... 1,600 hours
Average direct labor rate per hour ......... $12.50
Estimated direct labor cost ............. $20,000
Actual production during April was 26,400 boxes and actual direct labor cost was $22,850.

Required
Prepare a flexible budget for Honolulu Hello that shows the projected direct labor cost and any difference between the budget and actual labor cost.