Affordable Electronics Inc. manufactures medium$-$quality, reasonably priced wireless speakers for home use. The company uses standards to control its costs. The labour standards that have been set for one speaker are as follows:

Standard Hours: $12$ minutes $(0\mathrm{.}20$ hours$)$

Standard Rate per hour: $$12\mathrm{.}00$

Standard Cost: $$2\mathrm{.}40$

During July, $2,550$ hours of direct labour time were recorded to make $12,000$ units. The direct labour cost totalled $$29,580$ for the month.

$2.$ Break down the difference in cost from requirement $1-$b above into a labour rate variance and a labour efficiency variance. $($Indicate the effect of each variance by selecting $"$F$"$ for favourable, $"$U$"$ for unfavourable, and "None" for no effect $($i$.$e$.,$ zero variance$).)$

Labour rate variance:

Labour efficiency variance :

$3.$ The budgeted variable manufacturing overhead rate is $$5\mathrm{.}00$ per direct labour$-$hour. During July, the company incurred $$10,965$ in variable manufacturing overhead cost. Compute the variable overhead spending and efficiency variances for the month. $($Indicate the effect of each variance by selecting $"$F$"$ for favourable, $"$U$"$ for unfavourable, and "None" for no effect $($i$.$e$.,$ zero variance$).)$

Variable overhead spending variance :

Variable overhead efficiency variance :