P24-6A School Tools manufactures ring binders. During August, the company produced and sold 104,000 binders and recorded the following cost data: Direct materials: Standard (2 parts @ $0.12 per part). Actual (209,500 parts @ $0.16 per part) Direct labor: Standard (0.02 hr @ $6.00 per hr). Actual (1,560 hr @ $6.20 per hr).. Manufacturing overhead: Standard: Actual Standard Total Unit Cost Cost $0.24 $33,520 0.12 9,672 Variable (0.02 machine hr @ $6.00 per hr) $0.12 Fixed ($24.000 for static budget volume of 100,000 units and 3,000 machine hours)......... 0.24 0.36 Actual. 45,500 Total manufacturing costs. $0.72 $88,692 Required 1. Compute the price and efficiency variances for direct materials and direct labor. 2. For manufacturing overhead, compute the total variance, the flexible budget variance, and the production volume variance. 3. Prepare a standard cost income statement through gross profit to report all variances to management. Sale price of the binders to college bookstores was $1.25 each. 4. School Tools' management used more experienced workers during August. Discuss the tradeoff between the two direct labor variances.