Arvind Manufacturing product ceramic teapots. Arvind 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) Click the icon to view the standards) Actual cost and operating data from the most recent month are as follows: (Click the icon to view the actual results) As manufacturing overhead is allocated on the basis of direct labor hours Read the requirements Data table Standards: Direct material 50 pounds per batch at $1.00 per pound Direct labor 2.0 hours per batch at $11.00 per hour Variable MOH standard rate $2.00 per direct labor hour Predetermined fixed MOH standard rate $5.00 per direct labor hour Total budgeted fixed MOH cost $1,150 Print Done Data table u s Purchased 3,100 pounds at a cost of $0.60 per pound Used 2,800 pounds in producing 50 batches Actual direct labor cost of $1,392 at an average direct labor cost per hour of $11.60 Actual variable MOH $312 Actual fixed MOH $1,550 dd Print Done Requirements 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? Print Done Requirement 1. Calculate the standard cost of one batch. Standard cost Standard cost per batch Direct materials Direct labor Variable MOH Fixed MOH Total standard cost Requirement 2. Calculate the direct material variance. Enter the vanants sportive numbers. Enter currency amounts to the nearest cent and your answer to the real whole dollar Label the variances as favorable) or unfavorable (U) Abbreviations used: OMDirect matas) Fint determine the formula for the price variance, then compute the price variance for direct materials ) DM pro variance ) - Determine the formula for the quantity variance, the compute the quantity variance for direct materials = OM quality variance Requirement 2b. Calculate the direct labor variances (Enter the variances s poutie numbers Enter cuency amounts to the nearest cent and your awwers to the area whole dolar Label the variances as favorable (F) or unfavorable (U) Abbreviations und DL Direct labor) First, determine the formula for the rate variance, the compute the rate variance for direct labor Durata var Fol determine the formula for the efficiency variance, the compute the efficiency variance for direct labor OL ency variance Requirement 26. Calculate the variable manufacturing overhead variances (Enter the variances as positive numbers. Enter currency amounts to the nearest cent and your answers to the nearest whole dollar, Label the variances as favorable (F) of unfavorable (U)) First, determine the formula for the rate variance, then compute the rate variance for variable manufacturing overhead Variable overhead rate variano Now compute the variable manufacturing overhead officiency variance. First determine the formula for the officiency variance, then computo the encienicy variance for variable manufacturing overhead Variable overhead efficiency variance Rama tha Requirement 2. Calculate the fixed manufacturing overhead variances (Enter the variances as positive numbers. Label the variances as favorable (F) or unitavorable (U). Antreviation used: MOH. Manufacturing overhead) Begin by computing the fixed manufacturing overhead budget variance First determine the formula for the budget varianon, then compute the budget verance for fixed manufacturing overhead Ford MOH budget Variance Now compute the found manufacturing overhead Volume varianco. Fint determine the formula for the volume variance, then compute the volume variance for fixed manufacturing overhead Fixed MOH volume variance Requirement 3. Have the company's managers done a good job or a poor job controlling materials, labor and overhead costs? Why or why not? Overall, the managers have done a job of controlling materials, labor and overhead costs. This is evidenced by the fact that they have Requirement she has the name mannen hann Requirement 4. Describe how the company's managers can benefit from the standard costing system of an input field is not used in the table, leave the input told umply do not het label) The following are benefits of a standard conting system Do you think the company should continue with the standard cost system? The company