This is the only information I was given for this exercise.

Zinn Corporation recently agreed to a union contract provision that guarantees a minimum wage of $1,890 per month to each direct labour employee equivalent to 135 hours of work each month. Currently, 135 employees are covered by this provision. All direct labour employees are paid $14 per hour. Thus, until an employee works 135 hours, the remenuration is a fixed $1,890 per employee each month. Rusty Zinn, the assistant to the accountant was given the task of budgeting for the direct labour cost. Because of the contract provision, Rusty decided that the $255,150 (= 135 * $1,890 per month) should be treated as a fixed monthly cost. Rusty was instructed to calculate each month's budget using the following formula: $255,150 + $10 per direct labour-hour. Figures for the first three months of the fiscal year are as follows: Direct labour-hours planned and worked Direct labour costs budgeted Direct labour costs incurred Variance April 31,500 $ 570,150 $ 441,000 $ 129,150F May 50,000 $ 755,150 $ 700,000 $ 55,150F June 70,000 $ 955,150 $ 980,000 $ 24,850U These figures are a source of concern because they show unfavourable variances when production is high, and favourable variances during slow months. The factory manager is certain that this trend does not reflect reality. Required: 1. Not available in Connect. 2. Develop a formula for direct labour costs more appropriate to the actual cost behaviour, then recalculate the variances for April, May, and June. April May June