Pender 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 Variance VOH rate VOH efficiency Meaning Fixed manufacturing overhead: Variance FOH budget Meaning Possible explanation Possible explanation hired less qualified employees at a lower rate hired more qualified employees at a higher rate FOH volume purchased higher quality materials at a higher price purchased lower quality materials at a lower price Are any of the variances likely to be interrelated? The favorable DM quantity variance is likely to be related to the unfavorable DL rate variance. It is likely that Pender Awning purchased higher quality materials at a higher price resulted in improved labor efficiency This may have