Pratt Aaming 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 Actual cost and operating data from the most recent month are as follows (Click the icon to view the actual results) (Click the icon to view the standards.) All manufacturing overhead is allocated on the basis of direct labor hour. Read the requirements. Requirement 1. Calculate the standard cost of one awning Standard cont Standard cost per unit i Direct materials Direct labor Variable MOH Fixed MOH Total standard cost Requirement Za. Calculate the direct material vanances (Enter the variances as positive numbers. Enter currency amounts to the nearest cent and your answers to be nearest whole dollar Label the vanance as favorable (F) or unfavorable (U) Abbreviations used: DM Direct materials) Fint determine the formula for the price variance, then compute the price vanance for direct materials Incl DM price variance Determine the formula for the quantity variance, then compute the quantity variance for direct materials DM quanety variance Requirement 2b. Calculate the direct labor vanances (Enter the vanances as positive numbers Enter currency amounts to the nearest cent and your answers to the nearest whole dollar Label the vanance as favorable (F) or unfavorable (U) Abbreviations used DL Drect labor) First determine the formula for the rate variance, then compute the rate variance for direct labor Date variance First determine the formula for the efficiency vanance, then compute the efficiency variance for direct labor Pratt 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 Actual cost and operating data from the most recent month are as fol (Click the icon to view the actual results) (Click the icon to view the standards.) All manufacturing overhead is allocated on the basis of direct labor houm Read the ments B Requirement 2b. Calculate the direct labor variances. (Enter the variances as positive numbers. Enter curency amounts to the nearest cent and your answers to the neat whole dolar 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 DL rate variance First determine the formula for the efficiency variance, then compute the efficiency variance for direct labor DL efficiency variance Requirement 2c. Calculate the vanable manufacturing overhead variances. (Enter the vanances as positive humbers. Enter cumency amounts to the nearest cent and your a whole dollar Label the vanance as favorable (F) or unfavorable (U)) First determine the formula for the rate vanance, then compute the rate variance for variable manufacturing overhead: (Round interm calculations to the nearest cent) Variable overhead rate vanance Now compute the variable manufacturing overhead efficiency variance. First determine the formula for the efficiency vanance, then compute the efficiency variance for vanabile manufacturing othead Vanable overhead ciency variance Requirement 2d. Calculate the foxed manufacturing overhead variances (Enter the vanance as a positive number Label the vanance as favorable (F) or unable() Begin by computing the fixed manufacturing overhead budget variance. First determine the formula for the budget variance, then compute the budget variance for fisnt manufacturing overhead Fixed MOH Pratt Awning manufacturen awnings and uses a standard cost system. The company allocates Actual cost and operating data from the most cont month are as fo COLD Requirement 2d. Calculate the fixed manufacturing overhead variances (Enter the variance as a positive number Label the vanance as favorable (F) or unfavorable (U)) Begin by computing the fixed manufacturing overhead budget variance. First determine the formula for the budget variance, then compute the budget variance for fived manufactug v Fored MOH budget variance Now compute the fixed manufacturing overhead volume variance First determine the formula for the volume variance, then compute the volume vanance for fixed manufacturing overheat Fixed MOH volume vanance Requirement 3. Explain what each of the vanances you calculated means and give at least one possible explanation for each of those variances Direct materials: Possible explanation Variance Meaning DM price OM quarely Direct Labor: Possible explanation Variance Meaning DL DL efficiency Variable manufacturing overhead: Possible explanation Variance Meaning VOH VOH efficiency Time Remaining: 04 55 35 Next Variance OM price OM quantity Direct Labor: Variance Meaning DL rate D efficiency Variable manufacturing overhead: Variance Meaning VOH rate VOH efficiency Fixed manufacturing overhead: Variance Meaning FOH budgel FOH volume Are any of the variances likely to be interelated? The have resulted in Meaning Possible explanation variance is likely to be related to the Possible explanation Possible explanation Possible explanation variance It is likely that Pratt Awring FIRLAD This may had based on the number of direct labor hours. The following are the company's cost and the company allocate -X Standard Price and Volume Standards: Direct materials 250 yards per awning at $18.00 per yard Direct labor 4.0 hours per awning at $10.00 per hour Variable MOH standard rate $7.00 per direct labor hour Predetermined fixed MOH standard rate $0.00 per direct labor hour Total budgeted fixed MOH cost $52,500 Print Done Fixed MOH Total standard cost Requirement 2a. Calculate the direct material variances. (Enter the variances as variance as favorable (F) or unfavorable (U) Abbreviations used: DM Direct mate Fest determine the formula for the price variance, then compute the price variance Determine the formula for the quantity variance, then compute the quantity varianc Actual cost and operating data from the most recent month are as lufion (Click the icon to view the actud us) All manufacturing overhead is allocated on the basis of direct labor hours Read the rearements Meie a Actual Results Purchased 30,000 yards at a total cost of $600.100 Used 36,500 yards in producing 1.500 anings Actual direct labor cost of $58,140 for a total of 5,700 hours Actual vanable MOH $42,180 Actual fixed MOH $55 500 Print Done DM quantity variance 7 Standard Price and Volume Standards: Direct materials 25.0 yards per awning at $18.00 per yard Direct labor 4.0 hours per awning at $10.00 per hour Variable MOH standard rate $7.00 per direct labor hour Predetermined fixed MOH standard rate $9.00 per direct labor hour Total budgeted fixed MOH cost $52,500 Print Done -X Actual Results Purchased 39,000 yards at a total cost of $698,100 Used 36,500 yards in producing 1,500 awnings Actual direct labor cost of $58,140 for a total of 5,700 hours Actual variable MOH $42,180 Actual fixed MOH $55,500 Print Done