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 Standard Standard Hours Rate per Hour Cost 30 minutes 5.60 2.80 During July, 10,680 hours of direct labor time were required to make 20,000 discs. The direct labor cost totaled $57,672 for the month. Required 1a. According to the standards, what direct labor cost should have been incurred to make the 20,000 discs? (Do not round intermediate calculations.) Total standard direct labor cost 1b. By how much does this differ from the cost that was incurred? (Inputthe amount as a positive value. Do not round intermediate calculations. Leave no cells blank be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Spending variance (Click to select) 2. Break down the difference in cost from (1)above into a labor efficiency variance and a labor rate variance. (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Labor efficiency variance (Click to select) Labor rate variance (Click to select)