Following is a partially completed performance report for a recent week for direct labor in the binding department of a book publisher:

The original budget is based on the expectation that 3,000 books would be bound: the standard is 20 books per hour at a pay rate of $12 per hour. During the week, 2,860 books were actually bound. Employees worked 160 hours at an actual total cost of $1,888?
Required:
a. Calculate the fixed budget amount against which actual performance should be evaluated and then calculate the budget variance.
b. Calculate the direct labor efficiency variance in terms of hours.
c. Calculate the direct labor rate variance?

Original Budget $1,800 Flexed Budget ActualBudget Variance $1,888 Direct labor