Pender Awning manufactures awnings and uses a standard cost system. The company allocates Actual cost and operating data from the most recent month are as follows: overhead based on the number of direct labor hours. The following are the company's cost and (Click the icon to view the actual results.) standards data: All manufacturing overhead is allocated on the basis of direct labor hours. (Click the icon to view the standards.) Read the 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 the nearest cent and your answers to the nearest whole dollar. Label the variance 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. Pender Awning manufactures awnings and uses a standard cost system. The company allocates Actual cost and operating data from the most recent month are as follows: overhead based on the number of direct labor hours. The following are the company's cost and (Click the icon to view the actual results.) standards data: All manufacturing overhead is allocated on the basis of direct labor hours. (Click the icon to view the standards.) Read the Requirement 2b. Calculate the direct labor variances. (Enter the variances as positive numbers. Enter currency amounts to the nearest cent and your answers to the 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. (([)=DLratevariance)= First determine the formula for the efficiency variance, then compute the efficiency variance for direct labor. \begin{tabular}{l|l|l} ( & - & )= DL efficiency variance \\ ( & & )= \end{tabular} Requirement 2c. Calculate the variable manufacturing overhead variances. (Enter the variances as positive numbers. Enter currency amounts to the nearest cent and your answers to the nearest whole dollar. Label the variance 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 nearest cent.) Now compute the variable manufacturing overhead efficiency variance. First determine the formula for the efficiency variance, then compute the efficiency variance for variable manufacturing overhead. Pender Awning manufactures awnings and uses a standard cost system. The company allocates Actual cost and operating data from the most recent month are as follows: overhead based on the number of direct labor hours. The following are the company's cost and (Click the icon to view the actual results.) standards data: All manufacturing overhead is allocated on the basis of direct labor hours. (Click the icon to view the standards.) Read the Pender Awning manufactures awnings and uses a standard cost system. The company allocates Actual cost and operating data from the most recent month are as follows: overhead based on the number of direct labor hours. The following are the company's cost and (Click the icon to view the actual results.) standards data: All manufacturing overhead is allocated on the basis of direct labor hours. (Click the icon to view the standards.) Read the requirements. rixea manuracturing overnead: Pender Awning manufactures awnings and uses a standard cost system. The company allocates Actual cost and operating data from the most recent month are as follows: overhead based on the number of direct labor hours. The following are the company's cost and (Click the icon to view the actual results.) standards data: All manufacturing overhead is allocated on the basis of direct labor hours. (Click the icon to view the standards.) Read the requirements. DL efficiency Variable manufacturing overhead: Fixed manufacturing overhead: Are any of the variances likely to be interrelated? The variance is likely to be related to the variance. It is likely that Pender Awning This may have resulted in 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? Standard Price and Volume Actual Results Question Viewer Purchased 54,000 yards at a total cost of $729,000 Used 48,900 yards in producing 2,500 awnings Actual direct labor cost of $84,640 for a total of 7,360 hours Actual variable MOH$16,192 Actual fixed MOH$53,700
