Affordable Electronics Inc. manufactures medium-quality, reasonably priced DVD players. The company uses standards to control its costs. The labour standards that have been set for one player are as follows Standard Rate per Hour $10.00 Standard Hours Standard Cost $2.00 12 minutes (0.20 hours) During July, 2,150 hours of direct labour time were recorded to make 10,000 units. The direct labour cost totalled $21,070 for the month Required: 1- What direct labour cost should have been incurred to make the 10,000 a. DVD players? (Do not round intermediate calculations.) Direct labour cost 1- By how much does direct labour cost differ from the cost that was b. incurred? (Indicate the effect of variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Total variance 2. Break down the difference in cost from requirement 1-b above into a labour rate variance and a labour efficiency variance. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Labour rate variance Labour efficiency variance
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