(Click the icon to view the actual results.) Data table All manufacturing overhead is allocated on the basis of direct labor hours. Read the requirements. Standards: Direct material 20 pounds per batch at $5.00 per pound 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 posit dollar. Label the variances as favorable (F) or unfavorable (U). Abbreviations used: DM = Direct materials. First, determine the formula for the price variance, then compute the price variance for direct materials. Data table 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 Actual variable MOH$728 Actual fixed MOH$1,440