Problem 9.28 Standard Costs, Decomposition of Budget Variances, Direct Materials and Direct Labor Haversham Corporation produces dress shirts. The company uses a standard costing system and has set the following standards for direct materials and direct labor (for one shirt): 4.20 Direct labor (1.1 hr. $200 22.00 Total prime cost $26.20 During the year, Haversham produced 9,800 shirts. The actual fabric purchased was 14,600 yards at $2.74 per yard. There were no beginning or ending inventories of fabric. Actual direct labor was 10,900 hours at $19.60 per hour. Required: 1. Compute the costs of fabric and direct labor that should have been incurred for the production of 9,800 shirts. Direct materials Direct labor 2. Compute the total budget variances for direct materials and direct labor. Select your answer a Direct materials Select your answer Direct labor 3. Break down the total budget variance for direct materials into a price variance and a usage variance. Select your answer Materials Price Variance Materials usage Variance Select your