Tora Co. plans to produce 1,100 units in July. Each unit requires four hours of direct labor. The direct labor rate is $12 per hour. Prepare a direct labor budget for July TORA CO Direct Labor Budget For Month Ended July 31 Budget production (units) 1.100 units Total labor hours needed Budgeted direct labor cost A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured Standard (7 lbs. @ $8 per lb.) (3 hrs. @ $15 per hr.) (3 hrs. @ $12 per hr.) Actual 58,600 lbs. @ $8.10 per lb. 24,600 hrs. @ $15.40 per hr. $384,900 8,300 (1) Compute the standard cost per unit. Direct materials Direct labor Overhead Total (2) Compute the total cost variance for June. Indicate whether the cost variance is favorable or unfavorable. Total cost variance Direct materials Direct labor Overhead Units manufactured Standard (7 lbs. @ $8 per lb.) (3 hrs. @ $15 per hr.) (3 hrs. @ $12 per hr.) Actual 58,600 lbs. @ $8.10 per lb. 24,600 hrs. @ $15.40 per hr. $304,900 8,300 AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price Compute the direct materials price variance and the direct materials quantity variance. Indicate whether each variance is unfavorable. Actual Cost Standard Cost