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:

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Part $1$

Actual cost and operating data from the most recent month are as$$ follows:

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All manufacturing overhead is allocated on the basis of direct labor hours.

Read the requirementsLOADING....

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Part $1$

Requirement $1.$ Calculate the standard cost of one awning.

Standard cost

Standard cost per unit

Direct materials

Direct labor

Variable MOH

Fixed MOH

Total standard cost$($Click the icon to view the standards.$)$

All manufacturing overhead is allocated on the basis of direct labor hours.

Read the requirements.

Requirements

Calculate the standard cost of one awning.

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.

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?

Standard Price and Volume

Standards:

Direct materials $22\mathrm{.}0$ yards per awning at $$13\mathrm{.}00$ per yard

Direct labor $2\mathrm{.}0$ hours per awning at $$12\mathrm{.}00$ per hour

Variable MOH standard rate $$4\mathrm{.}00$ per direct labor hour

Predetermined fixed MOH standard rate $$12\mathrm{.}00$ per direct labor hour

Total budgeted fixed MOH cost $$45,200$

Actual Results

Purchased $46,000$ yards at a total cost of $$593,400$

Used $42,900$ yards in producing $2,000$ awnings

Actual direct labor cost of $$46,585$ for a total of $3,850$ hours

Actual variable MOH$$17,710$

Actual fixed MOH$$50,700$