Exercise 4 (Working Backwards from Labor Variances) The Global Credit Card, Inc., uses standards to control the labor time involved in opening mail from card holders and recording the enclosed remittances. Incoming mail is gathered into batches, and a standard time is set for opening and recording each batch. The labor standards relating to one batch are given below: Per batch.... Standard Cost Standard Standard Hours Rate 2.5 P6 P15 348 Chapter 10 The record showing the time spent last week in opening batches of mail has been misplaced. However, the batch supervisor recalls that 168 batches were received and opened during the week, and the controller recalls the following variance data relating to these batches: Total labor variance Labor rate variance Required: P330 U 150 F 1. Determine the number of actual labor-hours spent batches during the week. 2. Determine the actual hourly rate paid to employees for opening batches last week. Exercise 5 (Direct Labor Variances) Cheesy Mitch, Inc., prepares in-flight meals for a number of major airlines. One of the company's products is stuff cannelloni with roasted pepper sauce, fresh baby corn, and spring salad. During the most recent week, the company prepared 6,000 of these meals using 1,150 direct labor-hours. The company paid these direct labor workers a total of P11,500 for this work, or P10 per hour. According to the standard cost card for this meal, it should require 0.20 direct labor-hours at a cost of P9.50 per hour. Required: 1. What direct labor cost should have been incurred to prepare 6,000 meals? How much does this differ from the actual direct labor cost? 2. Break down the difference computed in (1) above into a labor rate variance and a labor efficiency variance