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Amber Manufacturing produces ceramic teapots. Amber allocates overhead based on the number of direct labor hours. The company is looking into using a standard cost system and has developed the following standards (one "unit" is a batch of 100 teapots): (Click the icon to view the standards.) Actual cost and operating data from the most recent month are as follows: (Click the icon to view the actual results.) All manufacturing overhead is allocated on the basis of direct labor hours. Read the requirements. Requirement 1. Calculate the standard cost of one batch. Requirement 2a. Calculate the direct material variances. (Enter the variances as positive numbers. Enter currency amounts to the nearest cent and your answers to the nearest whole 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 Standards: Direct material 20 pounds per batch at $2.00 per pound Direct labor 5.0 hours per batch at $11.00 per hour Variable MOH standard rate $7.00 per direct labor hour Predetermined fixed MOH standard rate $5.00 per direct labor hour Total budgeted fixed MOH cost $2,450 Data table Purchased 2,400 pounds at a cost of $1.70 per pound Used 1,700 pounds in producing 80 batches Actual direct labor cost of $4,859 at an average direct labor cost per hour of $11.30 Actual variable MOH$3,182 Actual fixed MOH$2,550 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