Variance analysis and! unit standard costs Mete Johnson's Extravagant Haberdashery sells a variety of custom-tailored clothing items. One of the more profitable products is a cashmere sport coat which sells for $650. Following are production standards for the coat:

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Cashmere wool cloth... 3 yds. Silk lining.. 2 yds. $24.00/yd. 9.00/yd. $ 72 18 Direct labor 9 hrs. 15.00/hr. 135 MOH applied at $5/DLH 45 During the past week, 1,000 coats were produced and sold, and the following costs were incurred: Cashmere wool cloth Silk lining. Direct labor Actual MOH 2,900 yds. 2,200 yds. @ $25.00/yd. $ 72,500 8.00/yd. 9,800 hrs. @ 15.50/hr. 17,600 151,900 50,000 $292,000