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.) 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 awning. Requirement 2a. Calculate the direct material variances. (Enter the variances as positive numbers. Enter currency amounts to Requirement 2a. Calculate the ditoct material variances. (Enter the varianoes as positive numbers, Entor currency amounts to the nearest cent and your answers to the nearest whole dollar Label the variance as favorabie (F) or unfavorable (U). Abbroviations used: DM = Direct materials, ) Fint determine the formula for the price variance, then compute the price variance for direct materials. Requirement 2b. Caiculate the direct labor variances. (Enter the variances as positive numbers. Enter currency amounts to the nearest cent and your answers nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DL = Direct labor.) First determine the formula for the rate variance, then compute the rate variance for direct labor. First determine the formula for the efficioncy variance, then compute the efficiency variance for direct labor. Requirement 2c. Calculate the variable manufacturing ovemead variances. (Enter the variances as positive numbers. Enter currency arnounts to the nearest your answers to the nearest whole dollar. Label the varianoe as favorable (F) or unfavorable (U)).) First determine the formula for the rate variance, then compute the rate variance for variable manufacturing overhead. (Round interim calculations to the neare Now compute the variable manulacturing overhead efficiency variance. First determine the formula for the efficiency variance, then compute the efticiency varia variable manulacturing overtead. Requirement 2d. Calculate the foxed manutacturing ovorhead variances. (Enter the variance as a positive number, Label the variance as favorable (F) or untavorable (d)d) Begin by computing the foxed manulacturing overhead budgot variance. First determine the formula for the budget variance, then compute the budget variance for fixed manulacturing owerhesd. Now compute the fixed manulacturing ovethead volume variance. Fint determine the fornula for the volume variance, then compute the volume variance for fixed mtarufocturing overheod. ances: Tok newped A. This may have Fired manufacturing overheac Actual Results Purchased 38,880 yards at a total cost of $489,888 Used 35,800 yards in producing 1,600 awnings Actual direct labor cost of $96,720 for a total of 7,800 hours Actual variable MOH$55,380 Actual fixed MOH $41,800 Flxed manufacturing overhead: 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