Reading ymmer eBOOK Titlem 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 Fabric (1.5 yds. @ $2.80) Direct labor (1.1 hr. @ $20) 22.00 Total prime cost $26.20 During the year, Haversham produced 9,800 shirts. The actual fabric purchased was 14,600 yards at $2.72 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. 10:34 PM