Question $4[18$ points$]$

Southgate Inc. made $35,500$ units during July, using $32,300$ direct labor hours. They expected to use $32,000$ hours per the standard cost

card. Their employees were paid $$19$ per hour for the month of July. The standard cost card uses $$18\mathrm{.}75$ as the standard hourly rate.

a$)$ Compute the direct labor rate variance for the month of July and determine whether it is favorable or unfavorable.

o$)$ Compute the direct labor time variance for the month of July and determine whether it is favorable or unfavorable.

c$)$ Compute the total direct labor variance for the month of July and determine whether it is favorable or unfavorable.

Assume that the new standard rate per hour is $$16\mathrm{.}50.$

d$)$ Compute the new direct labor rate variance and determine whether it is favorable or unfavorable.

e$)$ Compute the new direct labor time variance and determine whether it is favorable or unfavorable.

Compute the new total direct labor variance and determine whether it is favorable or unfavorable.