Appleton Manufacturing produces ceramic teapots. Appleton allocates overhead based on the number of direct labor hours. The company is looking into using a standard cost system and has developed the following standards (one "unit" is a batch of 100 teapots): Standards: Direct material 50 pounds per batch at $1.00 per pound Direct labor 3.0 hours per batch at $15.00 per hour Variable MOH standard rate $6.00 per direct labor hour Predetermined fixed MOH standard rate $5.00 per direct labor hour Total budgeted fixed MOH cost $1,200 Purchased 3,000 pounds at a cost of $0.50 per pound Used 2,600 pounds in producing 50 batches Actual direct labor cost of $2,601 at an average direct labor cost per hour of $15.30 Actual variable MOH $1,071 Actual fixed MOH $1,300 1. Calculate the standard cost of one batch. 2. Calculate the following variances: a. The direct material variances. b. The direct labor variances. c. The variable manufacturing overhead variances. d. The fixed manufacturing overhead variances. 3. Have the company's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why or why not? 4. Describe how the company's managers can benefit from the standard costing system. Do you think the company should continue with the standard cost system