Bonita, Ltd$.$ manufactures shirts, which it sells to customers for embroidering with various slogans and emblems. The standard cost

card for the shirts is as follows.

Sandy Robison, operations manager, was reviewing the results for November when he became upset by the unfavorable variances he

was seeing. In an attempt to understand what had happened, Sandy asked CFO Suzy Summers for more information. She provided the

following overhead budgets, along with the actual results for November.

The company purchased $81,000$ yards of fabric and used $92,600$ yards of fabric during the month. Fabric purchases during the month

were made at $$2\mathrm{.}80$ per yard. The direct labor payroll ran $$447,125,$ with an actual hourly rate of $$12\mathrm{.}25$ per direct labor hour. The

annual budgets were based on the production of $590,000$ shirts, using $440,000$ direct labor hours. Though the budget for November

was based on $44,500$ shirts, the company actually produced $41,000$ shirts during the month.