Exercise 11-4 Direct Labor and Variable Manufacturing Overhead Variances (LO11-2, LO11-3] Erie Company manufactures a small mp3 player called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate mp3 player are as follows: Standard Hours 27 minutes Standard Rate per Hour S5.80 Standard Cast $2.52 During August, 9.430 hours of direct labor time were needed to make 19,200 units of the Jogging Mate. The direct labor cost totaled $50,922 for the month Required: 1. According to the standards, what direct labor cost should have been incurred to make 19,200 units of the Jogging Mate? By how much does this differ from the cost that was incurred? (Round Standard labor time per unit and Standard direct labor rate to 2 decimal places.) Number of units manufactured Standard laborime per unit Total standard hours of labor lime Standard direct labor rate per hour Total standard direct labor cost Actual direct labar cost Standard direct labor cost Total variance 2. Break down the difference in cost from (1) above into a labor rate variance and a labor efficiency variance (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect i.e., zero variance). Do not round intermediate calculations.) Laborrate variance Laboreiciency variance 3. The budgeted variable manufacturing overhead rate is $4.5 per direct labor-hour. During August, the company incurred $49.036 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect i.e., zero variance). Do not round intermediate calculations and round your final answers to nearest whole dollar.) Variable overhead rate variance Variable overhead efficiency variance