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Frank's Bikes makes fixed gear bicycles.The company set the following standards related to labour:Each bike should take four direct labour hours to manufacture at a

Frank's Bikes makes fixed gear bicycles.The company set the following standards related to labour:Each bike should take four direct labour hours to manufacture at a cost of $15 per hour.

For August, the company produced 160 bicycles and employees worked 700 direct labour hours.The company's total labour cost for the month was $10,000.

needed.

Calculate the company's direct labour rate and efficiency variances.

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