In Giletto Company, direct labor is $20 per hour. The company expects to operate at 10,000 direct

Question:

In Giletto Company, direct labor is $20 per hour. The company expects to operate at 10,000 direct labor hours each month. In January 2012, direct labor totaling $203,000 is incurred in working 10,400 hours. Prepare
(a) A static budget report and
(b) A flexible budget report. Evaluate the usefulness of each report.