Requirement 1. Calculate the standard cost of one batch. Abbreviations used: DM = Direct materials.) First, determine the formula for the price variance, then compute the price variance for direct materials. Determine the formula for the quantity variance, then compute the quantity variance for direct materials. \begin{tabular}{lll} x( & & )= DM quantity variance \\ ( & & )= \\ \hline \end{tabular} Abbreviations used: DL = Direct labor.) First, determine the formula for the rate variance, then compute the rate variance for direct labor. First, determine the formula for the efficiency variance, then compute the efficiency variance for direct labor. \begin{tabular}{lll} ( & & )= DL efficiency variance \\ ( & 1 & )= \\ \hline \end{tabular} unfavorable (U).) First, determine the formula for the rate variance, then compute the rate variance for variable manufacturing overhead. ( ( )= rate variance 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. Begin by computing the fixed manufacturing overhead budget variance. First determine the formula for the budget variance, then compute the budget variance for fixed manufacturing overhead. Fixed MOH = budget variance = Requirement 3. Have the company's managers done a good job or a poor job controlling materials, labor and overhead costs? Why or why not? Overall, the managers have done a job of controlling materials, labor, and overhead costs. This is evidenced by the fact that they have The following are benefits of a standard costing system: Do you think the company should continue with the standard cost system? The company Standards: Direct material 50 pounds per batch at $4.00 per pound Direct labor 5.0 hours per batch at $13.00 per hour Variable MOH standard rate $2.00 per direct labor hour Predetermined fixed MOH standard rate $3.00 per direct labor hour Total budgeted fixed MOH cost $950 Purchased 1,800 pounds at a cost of $3.50 per pound Used 1,600 pounds in producing 30 batches Actual direct labor cost of $2,244 at an average direct labor cost per hour of $13.60 Actual variable MOH$380 Actual fixed MOH$1,250