3 **Erie Company: Labor and Manufacturing Variance Analysis for Jogging Mate Production**Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards set for one Jogging Mate are as follows:- **Standard Hours**: 30 minutes- **Standard Rate per Hour**: $6.20- **Standard Cost**: $3.10During August, 10,580 hours of direct labor time were needed to make 19,700 units of the Jogging Mate. The direct labor cost totaled $64,538 for the month.### Required Calculations:1. **Standard labor-hours allowed (SH)** - Calculate standard labor-hours to make 19,700 Jogging Mates.2. **Standard labor cost allowed (SH × SR)** - Determine standard labor cost to make 19,700 Jogging Mates.3. **Labor spending variance** - Calculate the difference between the actual and standard labor costs.4. **Labor rate variance and labor efficiency variance** - Analyze the difference in incurred costs due to rate and efficiency discrepancies.5. **Variable Manufacturing Overhead Analysis** - The budgeted variable manufacturing overhead rate is $4.30 per direct labor-hour. - The company incurred $50,784 in variable manufacturing overhead cost in August. - Compute the variable overhead rate and efficiency variances for the month.**For requirements 3 through 5**, indicate variance as "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Enter all amounts as positive values. Do not round intermediate calculations.### Calculation Template:1. **Standard labor-hours allowed** - [Space for calculation]2. **Standard labor cost allowed** - [Space for calculation]3. **Labor spending variance** - [Space for calculation]4. **Labor rate variance** - [Space for calculation]5. **Labor efficiency variance** - [Space for calculation]6. **Variable overhead rate variance** - [Space for calculation]7. **Variable overhead efficiency variance** - [Space for calculation]

The variance is the difference between the actual and standard cost of production data. The variance can be classified as Favorable or Unfavorable. Part 1.SH per unit = 30 minSH allowed for 19,700 units = 19,700*30/60 = 9,850Part 2. SH = 9,850SR = $6.20SH*SR = 9,850*$6.20 = $61,070Part 3.AH*AR = $65,637Labour spending variance = AH *AR - SH* SR = 65,637 - 61,070 = $4,567 UPart 4.SR = $6.20SH = 9,850AH = 10,580AH*AR = $65,637Labor rate variance = (AR - SR) *AH = AH*AR - AH *SR = 65,637 - 10,580*6.20 = 41 ULabor efficiency variance = (AH - SH) *SR = (10,580 - 9,850)*6.20 = $4,526 UPart 5.SH = 9,850SR = $4.30 per hour AH = 10,580AH*AR = 50,784Variable overhead rate variance = AH *AR - AH *SR = 50,784 - 10,580*4.30 = $5,290 UVariable overhead efficiency variance = (AH - SH) *SR = (10,580 - 9,850)*$4.30 = $3,139 UPart 1.SH allowed for 19,700 units = 9,850Part 2.SH*SR = $61,070Part 3.Labour spending variance = $4,567 UPart 4.Labor rate variance = $41 U Labor efficiency variance = $4,526 UPart 5.Variable overhead rate variance = $5,290 UVariable overhead efficiency variance = $3,139 U