Erie Company manufactures an MP3 player called the Jogging Mate. The company uses standards to control its costs. The labour and variable overhead standards that have been set for one Jogging Mate MP3 player are as follows: Direct labour Variable overhead Standard Hours 18 minutes 18 minutes Standard Rate per Hour $7.50 $4.00 Standard Cost $ 2.25 $ 1.20 Budgeted fixed overhead was estimated to be $12,375 per month. Fixed overhead cost is applied using direct labour-hours. During August, 4,400 hours of direct labour time was recorded in the manufacture of 15,500 units of the Jogging Mate. The direct labour cost totalled $40,675 for the month. Actual variable overhead and fixed overhead costs were $16,720 and $24,800, respectively. Required: 1-a. What direct labour cost should have been incurred in the manufacture of the 15,500 units of the Jogging Mate? (Do not round intermediate calculations.) Direct labour cost 1-b. Calculate the total direct labor cost variance? (Do not round Intermediate calculations. Indicate the effect of each varlance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (l.e., zero variance).) Variance 2. Calculate the labour rate variance and labour efficiency variance? (Indicate the effect of each varlance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (I.e., zero variance).) Labour rate variance Labour efficiency variance 3. 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