Following is a partially completed performance report for a recent week for direct labor in the binding department of a book publisher:

Original Budget Flexed Budget Actual Budget Variance Direct labor $ 9,600 $ 8,820 ________________________________________ The original budget is based on the expectation that 6,720 books would be bound; the standard is 14 books per hour at a pay rate of $20 per hour. During the week, 7,000 books were actually bound. Employees worked 490 hours at an actual total cost of $8,820.

a. Calculate the flexed budget amount against which actual performance should be evaluated and then calculate the budget variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

b. Calculate the direct labor efficiency variance in terms of hours. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

c. Calculate the direct labor rate variance. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)