Memoirs, Inc. produces picture frames and has a standard for direct labor of .25 hours at $16 per hour. During August, Memoirs make 1,722 frames and pays $8,007 for 517 hours of for direct labor. Which of the following is NOT true? ( 1) The labor efficiency variance is unfavorable ( 2) The labor rate variance is favorable O 3) The flexible budget would show $6,888 for direct labor. O 4) Together the direct labor variances exceed 10% of the cost of direct labor for picture frames