Zinn Corporation recently agreed to a union contract provision that guarantees a minimum wage of $1,620 per month to each direct labour employee equivalent to 135 hours of work each month. Cu rrently, 135 employees are covered by this provision. All direct labour employees are paid $12 per hour. Thus. until an employee works 135 hours, the remuneration is a fixed $1,620 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 $218300 {=135 x $1,620 per month: should be treated as a fixed monthly cost Rusty was instructed to calculate each month's budget using the following formula: $218,?00 + $3 per direct labour-hour. Figures for the first three months of the scal year are as follows: Apri'L May June Direct labourhours planned and worked 23,535 43,353 63,535 Direct labour costs budgeted $442333 15 552,?53 $ 102333 Direct labour costs incurred $336,535 13 516,353 $ 356,535 Variance $135,133 F 5 46,?53 F $ 33,333 3 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. This part of the question is not part of your Connect assignment. 2. Develop a formula for direct labour costs more appropriate to the actual cost behaviour. then recalculate the variances for April, May, and June