EXERCISE 10-11 Labour and Variable Manufacturing Overhead Variances LOJ.104 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 Rate Standard Hours Standard Cost per la 12 minutes (0.2 hours) $15.00 53.00 During July. 3,400 hours of direct labour time were recorded to make 16,000 units. The direct labour cost totalled 549.300 for the month Required: 1. What direct labour cost should have been incurred to make the 16,000 speakers? By how much does this differ from the cost thal was incurred? 2. Break down the difference in cost from (1) above into a labour rate variance and a labour efficiency variance. 3. The budgeted variable manufacturing overhead rate is $4.00 per direct labour-hour. During July, the company incurred S15.640 in variable manufacturing overhead cost. Compute the variable overhead spending and efficiency variances for the month