Patterson Awning manufactures awnings and uses a standard cost system. The company allocates overhead based on the number of direct labor hours. The following are the company's cost and standards data: (Click the icon to view the standards.) F 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. system. The company allocates overhead ompany's cost and standards data: Actual cost and operating data from th BE (Click the icon to view the actual Requirements. 1. Calculate the standard cost of one awning 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. Explain what each of the variances you calculated means and give at least one possible explanation for each of those variances. Are any of the variances likely to be interrelated? Print Done Requirement 1. Calculate the standard cost of one awning. Standard cost Direct materials Direct labor Variable MOH Standard cost per unit Fixed MOH The key allocates overhead Actual cost and operating data from the most recent r COORD Total standard cost Requirement 2a. Calculate the direct material variances (Enter the variances as positive number Enter currency amounts to the nearest cent and your answers to the nearest we unfavorable (U) Abbreviations used DM Direct materials) First determine the formula for the price variance, then compute the price variance for direct materials DM price variance Determine the formula for the quantity variance, then compute the quantity variance for direct materials DM contity valance Requirement 2b, Calculate the direct labor variances (Enter the variances as positive numbers. Enter currency amounts to the nearest cant and your answers to the nearest wholes unfavorable (U) Abbreviations used. DL = Direct labor.) First determine the formula for the rate variance, then compute the rate variance for direct laboc DL rate variance First determine the formula for the efficiency variance, then compute the efficiency vanance for direct labor. DI, efficiency variance Requirement 2c. Calculate the variable manufacturing overhead vanances. (Enter the vanances as positive numbers Enter currency amounts to the neare favorable (F) or unfavorable (U).) First determine the formula for the rate variance, then compute the rate variance for variable manufacturing overhead. (Round intenm calculations to the ne Vanable overbead rate variance Now compute the variable manufacturing overhead efficiency variance. First determine the formula for the efficiency vanance, then compute the efficiency w Vanable overhead efficiency variance Patterson Awning manufactures awnings and uses a standard cost system. The company allocates overhead Actual cost and op Requirement 20. Laiculate the mixed manuracturing overmnead vanances. (Enter the variance as a positive number. Lader the vanance as ravon Begin by computing the fixed manufacturing overhead budget variance. First determine the formula for the budget variance, then compute the Fixed MOH budget variance, Now compute the fixed manufacturing overhead volume variance. First determine the formula for the volume variance, then compute the volume Fixed MOH volume variance Requirement 3. Explain what each of the wariances you calculated means and give at least one possible explanation for each of those variand Direct materials: Variance Meaning DM price DM quantity Direct Labor: Variance DL rate Meaning Possible explanation Possible explanation Variable manufacturing overhead Variance VOH a VOH efficiency Meaning Fixed manufacturing overhead Variance FO FOH volune Meaning Are any of the variances laly to be intelled? The Possible explanation Possible explanation vatance is likely to be related to the vanance it is key that Patterson Awning This may have resu Standard Price and Volume ata from (Click the icon to view the actu All manufacturing overhead is alloc - Standards: Direct materials 23.0 yards per awning at $10.00 per yard Direct labor 5.0 hours per awning at $17.00 per hour Variable MOH standard rate $6.00 per direct labor hour Predetermined fixed MOH standard rate $9.00 per direct labor hour Total budgeted fixed MOH cost $92,200 Print Done Actual Results U All manufacturing overhead is Purchased 51,030 yards at a total cost of $479,682 Used 47,100 yards in producing 2,100 awnings Actual direct labor cost of $179,228 for a total of 10,360 hours Actual variable MOH $65,268 Actual fixed MOH $98,200 Print Done