(Click the icon to view the actual results.) All manufacturing overhead is allocated on the basis of direct labor hours. Data table Read the requirements. Standards: Direct material 20 pounds per batch at $5.00 per pound Requirement 1. Calculate the standard cost of one batch. Direct labor 2.0 hours per batch at $17.00 per hour Variable MOH standard rate $5.00 per direct labor hour Predetermined fixed MOH standard rate $7.00 per direct labor hour Total budgeted fixed MOH cost $1,240 Requirement 2a. Calculate the direct material variances. (Enter the variances as positive numbers. Enter currency amounts to the nearest cent and your a Direct materials.) First, determine the formula for the price variance, then compute the price variance for direct materials. Data table Determine the formula for the quantity variance, then compute the quantity variance for direct materials. Purchased 1,920 pounds at a cost of $4.50 per pound Used 1,700 pounds in producing 60 batches Actual direct labor cost of $2,275 at an average direct labor cost per hour of $17.50 Requirement 2b. Calculate the direct labor variances. (Enter the variances as positive numbers. Enter currency amounts to the nearest cent and your Actual variable MOH$728 Direct labor.) Actual fixed MOH$1,440 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