Hollowell Audio, Inc. , manufactures military-specification compact discs. The company uses standards to control its costs. The labor standards that have been set for one disc are as follows: STANDARD HRS = 24 MIN STANDARD RATE PER HR = $ 6.00 STANDARD COST = $2.40 _______________ During July, 2,125 hours of direct labor time were recorded to make 20,000 discs. The direct labor cost totaled $49,300 for the month. 1a. According to the standards, what direct labor cost should have been incurred to make the 20,000 discs? Total standard DL cost= $48000 1b. By how much does this differ from the cost that was incurred? Spending variance= $1300 U 2. Break down the difference in cost from (1) above into a labor rate variance and a labor efficiency variance Labor rate variance= ??? Labor efficency variace= ??? 3.The budgeted variable manufacturing overhead rate is $16.00 per direct labor-hour. During July, the company incurred $39,100 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month. Variable overhead rate variance= ??? Variable overhead efficiency variance=