Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate are as follows:

Standard Hours	Standard Rate per Hour	Standard Cost
30 minutes	$5.80	$2.90

During August, 10,250 hours of direct labor time were needed to make 19,400 units of the Jogging Mate. The direct labor cost totaled $57,400 for the month.

Required:

1. What is the standard labor-hours allowed (SH) to makes 19,400 Jogging Mates?

2. What is the standard labor cost allowed (SH SR) to make 19,400 Jogging Mates?

3. What is the labor spending variance?

4. What is the labor rate variance and the labor efficiency variance?

5. The budgeted variable manufacturing overhead rate is $4.30 per direct labor-hour. During August, the company incurred $53,300 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month.

(For requirements 3 through 5, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.)

Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost driversthe number of cruises and the number of passengersthat it uses in its budgeting and performance reports. The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 86 passengers can be accommodated on the tour boat. Data concerning the companys cost formulas appear below:

	Fixed Cost per Month	Cost per Cruise	Cost per Passenger
Vessel operating costs	$ 6,700	$ 476.00	$ 3.40
Advertising	$ 2,400
Administrative costs	$ 5,400	$ 30.00	$ 1.50
Insurance	$ 3,700

For example, vessel operating costs should be $6,700 per month plus $476.00 per cruise plus $3.40 per passenger. The companys sales should average $28.00 per passenger. In July, the company provided 53 cruises for a total of 3,050 passengers.

Required:

Prepare the companys flexible budget for July.