Exercise $10-4($Algo$)$ Direct Labor and Variable Manufacturing Overhead Variances $[$LO$10-2,$ LO$10-3]$

Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The

labor standards that have been set for one Jogging Mate are as follows:

During August, $10,570$ hours of direct labor time were needed to make $19,600$ units of the Jogging Mate. The direct labor cost totaled

$$61,306$ for the month.

Required:

What is the standard labor$-$hours allowed $($SH$)$ to makes $19,600$ Jogging Mates?

What is the standard labor cost allowed $($SH $SR)$ to make $19,600$ Jogging Mates?

What is the labor spending variance?

What is the labor rate variance and the labor efficiency variance?

The budgeted variable manufacturing overhead rate is $$4\mathrm{.}30$ per direct labor$-$hour. During August, the company incurred $$48,622$

in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month.

Note: For requirements $3$ through $5,$ indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and

"None" for no effect $($i$.$e$.,$ zero variance$).$ Input all amounts as positive values. Do not round intermediate calculations.