The direct labor rate standard for Key Largo Manufacturing is \($10\) per direct labor hour.

The direct labor efficiency standard is three hours per finished unit. Last month, the company completed 2,800 units of product using 8,620 direct labor hours at an actual cost of, $88,355.

Required:

a. According to the appropriate standard, how much should the company have paid for the 8,620 actual direct labor hours?

b. Determine the direct labor rate variance.

c. According to the appropriate standard, how many hours of direct labor should it have taken to produce the 2,800 units?

d. Determine the direct labor efficiency variance in hours.

e. Determine the direct labor efficiency variance in dollars.