Exercise 10-4 (Algo) Direct Labor and Variable Manufacturing Overhead Variances [LO10-2, LO10-3]

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:

\f1. Standard labor-hours allowed 2. Standard labor cost allowed 3. Labor spending variance F X 4. Labor rate variance None X Labor efficiency variance U 5. Variable overhead rate variance None X Variable overhead efficiency variance F X