Zinn Corporation recently agreed to a union contract provision that guarantees a minimum wage of $1,100 per month to each direct Jabour employee equivalent to 110 hours of work each month Currently, 110 employees are covered by this provision. All direct labour employees are paid $10 per hour. Thus, until an employee works 110 hours, the remuneration is a fixed S1100 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 $121.000 (= 110 * $1,100 per month) should be treated as a fixed monthly cost Rusty was instructed to calculate each month's budget using the following formula: $121,000+ $8 per direct labour-hour Figures for the first three months of the fiscal year are as follows. April May Direct Labour-hours planned and worked 29,500 46,000 Direct labour costs budgeted $ 357,000 $ 489,000 $ 649,000 Direct labour costs incurred 5 295,000 $ 460,000 $ 660,000 Variance $ 62,080 F $ 11,000 June 66,000 $ 29,000 F 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 formule for direct labour costs more appropriate to the actual cost behaviour, then recalculate the variances for April May, and June Apni May wune