X Standard price and volume late Standards: Direct materials 22.0 yards per awning at $14.00 per yard Direct labor 4.0 hours per awning at $18.00 per hour Variable MOH standard rate $2.00 per direct labor hour Predetermined fixed MOH standard rate $11.00 per direct labor hour Total budgeted fixed MOH cost $107,200 res Is to Dire hula Jance for the Print Done Varian Standard cost per unit Actual results Purchased 58,500 yards at a total cost of $789,750 Used 54,300 yards in producing 2,500 awnings Actual direct labor cost of $177,450 for a total of 9,750 hours Actual variable MOH $23,400 Actual fixed MOH $112,200 Int aria Print Done y va Requirement 1. Calculate the standard cost of one awning. Standard cost Standard cost per unit Direct materials Direct labor Variable MOH Fixed MOH Total standard cost 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. - DM price variance Determine the formula for the quantity variance, then compute the quantity variance for direct materials. BE = OM quantity variance 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. * ) DL rate variance tea ) = NEE First determine the formula for the efficiency variance, then compute the efficiency variance for direct labor lod 1... DL officiency variance 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.) Variable 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. Variable overhead efficiency variance Requirement 2d. Calculate the fixed manufacturing overhead variances. (Enter the variance as a positive number. Label the variance as favorable (F) or unfavorable (U).) Begin by computing the fixed manufacturing overhead budget varlance. First determine the formula for the budget variance, then compute the budget variance for fixed manufacturing overhead. Fixed MOH - budget variance VEE 10 Now compute the fixed manufacturing overhead volume variance. First determine the formula for the volume variance, then compute the volume variance for fixed manufacturing overhead. Fixed MOH volume variance Requirement 3. Explain what each of the variances you calculated moans and give at least one possible explanation for each of those variance Direct materials: Variance Meaning Possible explanation DM price DM quantity Direct Labor Variance Meaning Possible explanation DL rate DL officiency Variable manufacturing overhead Variance Meaning Possible explanation VOH rate VOH efficiency Fixed manufacturing overhead Variance Meaning FOH budget Possible explanation 00 1. FOH volume Are any of the variances to be interrelated? The variance is kely to be related to the variance it was ikely that Pratt Awning This have resulted in