e Chegg Study I Guided S/X y (-) Chapter 6 Homework Top Hat G How is labor rate varian c secure! https://clemson.instructure.com/courses/29200/modules/items/513161 ESOURCES Question 1 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 ework Direct materials Direct labor Variable overhead Fixed overhead Standard Price Standard Quantity Standard Cost $6.00 6.00 2.00 3.00 $17.00 $4 per yard1.50 yards $12 per DLH 0.50 DLH $4 per DLH 0.5O DLH $6 per DLH 0.5O DLH 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 resuits for November The company purchased and used 79,600 yards of fabric during the month. Fabric purchases during the month were made at $3.90 per yard. The direct labor payroll ran $313,600 with an actual hourly rate or $12.25 per direct labor hour. The annual budgets were based on the production of 48,000 shirts, using 250,000 direct labor hours. Though the budget for November was based on 49,000 shirts, the company actually produced 51,000 shirts during the month. Courses Variable Overhead Budget Indirect material Indirect labor Equipment repair Equipment power Annual Budget Per Shirt November-Actual $0.90 0.60 0.40 0.10 $2.00 $454,000 301,000 199,000 53,000 $1,007,000 $49,400 31,100 20,400 7,500 $108,400 Inbox Total Help Fixed Overhead Budget Annual Budget November-Actual $21,800 27,000 6,700 25,800 $262,000 345,000 85,000 316,000 Supervisory salaries Property taxes Depreciation 3:03