1. OPTIONS: Favorable DL efficiency, Favorable DM quantity, Un-Favorable DL efficiency, Un-Favorable DM quantity

2. Favorable DL Rate, Favorable DM price, Un-Favorable DL Rate, Un-Favorable DM price

3. Hired less qualified employees at a lower rate, hired more qualified employees at a higher rate, purchased higher quality materials at a higher price, purchased lower quality materials at a cheaper price.

4. An increase in materials needed, a reduction in materials needed, decreased labor efficiency, improved labor efficiency.

Standard Price and Volume Actual Results Standards: Direct materials 17.0 yards per awning at $16.00 per yard Direct labor 5.0 hours per awning at $16.00 per hour Purchased 40,480 yards at a total cost of $627,440 Used 36,500 yards in producing 2,200 awnings Actual direct labor cost of $176,094 for a total of 10,870 hours Actual variable MOH $58,698 Actual fixed MOH $91,300 Variable MOH standard rate $5.00 per direct labor hour Predetermined fixed MOH standard rate $8.00 per direct labor hour Total budgeted fixed MOH cost $85,800 Print Done Print Done Now compute the fixed manufacturing overhead volume variance. First determine the formula for the volume variance, then compute the volume variance for fixed manufacturing overhead. Fixed MOH volume variance Requirement 3. Explain what each of the variances you calculated means and give at least one possible explanation for each of those variances. Direct materials VarianceMeaning DM price DM quantity Direct Labor: Variance DL rate DM efficiency Variable manufacturing overhead Variance VOH rate Possible explanation Meaning Possible explanation Meaning Possible explanation VOH efficiency Fixed manufacturing overhead: Variance FOH budget Meaning Possible explanation FOH volume Are any of the variances likely to be interrelated? The resulted in | This may have variance is likely to be related to the variance. It is likely that Patterson Awning