Direct Materials $30.00 per lbs. $25.00 per hour Direct Labor VMOH FMOH MHRS Production volume Allocation base BUDGETED 5.00 lbs. per unit hours per 2.00 unit $3,200,000 $5,600,000 80,000 MHRS 40,000 units MHRS Direct Materials $32.00 per lbs. $22.00 per hour Direct Labor VMOH FMOH MHRS Production volume ACTUAL 4.50 lbs. per unit hours per 2.50 unit $3,192,000 $5,300,000 84,000 MHRS 35,000 units Direct Manufacturing Materials Variances AQ SP AQ AP SQA SP DMP Var DM Q Var DM FBV Direct Manufacturing Labor Variances AQ SP AQ AP SOA SP DL R Var DL E Var DL FBV