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Affordable Electronics Inc, manufactures medium-quality, reasonably priced wireless speakers for home...

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Accounting

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Affordable Electronics Inc, manufactures medium-quality, reasonably priced wireless speakers for home use. The company uses standards to control its costs. The labour standards that have been set for one speaker are as follows: During July, 9,250 hours of direct labour time were recorded to make 20,000 units. The direct labour cost totalled $101,750 for the month. Required: 1-a. What direct labour cost should have been incurred to make the 20,000 speakers? (Do not round intermediate calculations.) 1-b. By how much 'does direct labour cost differ from the cost that was incurred? (Indicate the effect of variance by selecting "F" for favourable, " U " for unfavourable, and "None" for no effect (i.e., zero variance).)

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