Cole manufactures coffee mugs that it sells to other companies for customizing with their own logos$.$ Cole prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of $60,100$ coffee mugs per month:

$($Click the icon to view the cost data $)$

Actual cost and production information for July $2018$ follows:

$($Click the icon to view actual cost and production information.$)$

Read the requirements.

Requirement $1.$ Compute the cost and efficiency variances for direct materials and direct labor. $SC=$ standard cost, $SQ=$ standard quantity.$)$

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