Western 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 March. She knows that the direct labour flexible budget variance for the month was $370 F and that the standard labour price was $8 per hour. A recent pay cut caused a favourable labour price variance of $0.30 per hour. The standard direct labour hours for actual March output were 5,340. Requirements 1. Find the actual number of direct labour hours worked during March. 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 $370 F. 2. Compute the direct labour price and efficiency variances. Do these variances suggest that the manager may have made trade-offs? Explain. - - - - - Direct labour hours Cost per hour 0.3 0.3 Total direct labour cost 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).) Price variance 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 X a reasonable trade-off Do these variances suggest that the manager may have made trade-offs? Explain. no trade-off The direct labour price variance combined with the direct labour et e manager may have used workers. However, due to the overall net effect, it appears there was