Erie Company manufactures a small mp3 player called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate mp3 player are as follows:

Standard

HoursStandard Rate

per HourStandard

Cost24 minutes$6.20$2.48

During August, 8,480 hours of direct labor time were needed to make 19,900 units of the Jogging Mate. The direct labor cost totaled $50,880 for the month.

Required:

1. According to the standards, what direct labor cost should have been incurred to make 19,900 units of the Jogging Mate? By how much does this differ from the cost that was incurred?(Round Standard labor time per unit and Standard direct labor rate to 2 decimal places.) determine if each if favorable or unfavorable as well.

Number of units manufactured:

Standard labor time per unit:

Standard direct labor rate per hour:

Actual direct labor cost:

Total variance: