Question 7 12 Marks Evry Company manufactures small mp3 player called Jogging Mate. The company uses standards to control its costs. The labour standards that have been set for one Jogging Mate mp3 player are as follows: Standard Rate per Hour Standard Cost Standard Hours 18 minutes R12.00 R3.60 During August 5, 750 hours of direct labour time were needed to make 20,000 units of Jogging Mate. The direct labour cost totalled R73,600 for the month. Required: 7.1. According to the standards, what direct labour cost should have been incurred to make 20,000 units of Jogging Mate? By how much does this differ from the cost that was incurred? 19 7.2. Breakdown the difference in cost from (7.1) above into a labour rate variance and a labour rate efficiency variance. 7.3. The budgeted variable manufacturing overhead rate is R4 per direct labour-hour. During August, the company incurred R21,850 in variable manufacturing overhead cost. Calculate the variable overhead rate and efficiency variances for the month