The Russo Company uses a flexible budget and standard costs to aid planning and control of its machining manufacturing operations. Its costing system for manufacturing his two direct-cost categories (direct materials and direct manufacturing labor-both variable) and two overhead-cost categories (variable manufacturing overhead and fixed manufacturing overhead, both allocated using direct manufacturing labor-hours). The following actual results are for August Click the icon to view the results). Some additional information about Russo Company's budget, standard costs and labor follows: Click the icon to view additional information) Read the requirements Budgeted variable mig. OH 400.000 Budgeted direct mig labor-hour lovel 40,000 Standard variable mfg. OH rato $ 10.00 Next, compute the number of excess hours. Variable mig OH efficiency variance 18,100 Standard variable mfg. OH rate Excess hours 1,810 s 10.00 Now compute the total number of standard direct manufacturing labor-hours allowed for the units produced Standard hrs allowed for units produced Choose from any list or enter any number in the B Data Table - X $177,100 F $724,500 U 548.250 Direct materials price variance (based on purchases) Direct materials efficiency variance Direct manufacturing labor costs incurred Variable manufacturing overhead flexible-budget variance Variable manufacturing overhead efficiency variance Fixed manufacturing overhead incurred 10,400 U 18,100 U 637 550 1 More Info At the 40,000 budgeted direct manufacturing labor-hour level for August. budgeted direct manufacturing labor is $1,000,000. budgeted variable manufacturing overhead is $400.000, and budgeted fixed manufacturing overhead is $680,000 The standard cost per pound of direct materials is $11.50. The standard allowance is 6 pounds of direct materials for each unit of product. During August, 40.000 units of product were produced. There was no beginning inventory of direct materials. There was no beginning or ending work in process. In August, the direct materials price variance was $1.10 per pound. In July, labor unrest caused a major slowdown in the pace of production resulting in an unfavorable direct manufacturing labor efficiency variance of $152.500 There was no direct manufacturing labor price variance. Labor unrest persisted into August. Some workers quit. Their replacements had to be hired at higher wage rates, which had to be extended to all workers. The actual average wage rate in August exceeded the standard average wage rate by $0.50 per hour