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Northeast Music, a harmonica manufacturer, uses standard costs to judge performance. Recently, a clerk mistakenly threw away some of the records, and the manager has only partial data for May. She knows that the direct labour flexible budget variance for the month was $380 F and that the standard labour price was $10 per hour. A recent pay cut caused a favourable labour price variance of $0.80 per hour. The standard direct labour hours for actual May output were 5,650. Requirements 1. Find the actual number of direct labour hours worked during May. First, find the actual direct labour price per hour. Then, determine the actual number of direct labour hours worked by setting up the computation of the direct labour flexible budget variance of $380 F. 2. Compute the direct labour price and efficiency variances. Do these variances suggest that the manager may have made tradeoffs? Explain. E) Requirement 1. Find the actual number of direct labour hours worked during May. First, nd the actual direct labour price per hour. Then, determine the actual number of direct labour hours worked by setting up the computation of the direct labour exible budget variance of $380 F. Select the formula, then calculate the actual price per hour. - = Actual direct labour price per hour Determine the actual number of direct labour hours worked by setting up the computation of the direct labour flexible budget variance of $380 F. (Enter in the known amounts, then determine the missing amounts to solve for the actual direct labour hours. Enter the amounts as positive numbers. Label the variance as favourable (F) or unfavourable (U).) Northeast Music Schedule to Compute Actual Direct Labour Hours Flexible budget Flexible for actual output budget variance Direct labour hours Cost per hour Total direct labour cost QB Flexible budget variance Requirement 2. Compute the direct labour price and efficiency variances. Do these variances suggest that the manager may have made trade-offs? Explain. Begin by determining the formula for the price variance, then compute the price variance for direct labour. (Enter the result as positive number. Label the variance as favourable (F) or unfavourable (U).) ) X = Price variance ) X Now determine the formula for the efficiency variance, then compute the efficiency variance for direct labour. (Enter the result as positive number. Label the variance as favourable (F) or unfavourable (U).) X = Efficiency variance X Do these variances suggest that the manager may have made trade-offs? Explain. The direct labour price variance combined with the direct labour efficiency variance suggests that the manager may have used workers. However, due to the overall net effect, it appears there was