Arvind Manufacturing produces ceramic teapots. Arvind allocates overhead based on the number of direct labor hours. The company is looking into using a standard cost system and has developed the following standards (one "unit" is a batch of 100 teapots) Click the icon to view the standards.) Actual cost and operating data from the most recent month are as follows: E (Click the icon to view the actual results.) All manufacturing overhead is allocated on the basis of direct labor hours. Read the requirements. X i Standard Price and Volume Standards: Direct material 50 pounds per batch at $4.00 per pound Direct labor 5.0 hours per batch at $16.00 per hour Variable MOH standard rate $2.00 per direct labor hour Predetermined fixed MOH standard rate $5.00 per direct labor hour Total budgeted fixed MOH cost $1,900 Print Done @ Actual Results Purchased 3,050 pounds at a cost of $3.60 per pound Used 2,900 pounds in producing 50 batches Actual direct labor cost of $4,131 at an average direct labor cost per hour of $16.20 Actual variable MOH $612 Actual fixed MOH $2,200 Print Done Requirement 1. Calculate the standard cost of one batch Standard cost Standard cost per batch Direct materials Direct labor Vanable MOH Fixed MOH Total standard cost Requirement 2a. Calculate the direct matonal variances (Enter the varia variances as favorable (F) or unfavorable (U) Abbreviations First, determine the formula for the price vanance then compute the price positive Enter currency amounts to the for directe DM price ance Determine the formula for uantity variance then compute the quantity var for direct materials Determine the formula for the quantity variance, compute the quantity for DM Quantity iance amounts to the Requirement 2b. Calculate the labor variances os favorable (F) or una able (0) First, determine the formula for the rate varian estcent the positive numbers Ente used abor then compute the rate variance for direct labor Dato variance First, determine the formula for the rate variance, then compute the rate variance for direct labor Di, rate variance First, determine the formula for the efficiency varience, then compute the efficiency variance for direct labor DL officiency variance ) = Requirement 2c. Calculate the variable manufacturing overhoud varancos. (Enter the variances as positive numbers. Enter currency amounts to the nearen whole dollar Label the variances as tuvorable (F) or unfavorable (U)) First, determine the formula for the rulo variance, then compute the rate variance for variable manutacturing overhead Variable overhead Tate variance Now compute the variable manufacturing overhead officiency variance First determine the formula for the efficiency variance, then compute the efficiency va Variable overhead cancy variance Requirement 20. Calculate the fixed manufacturing overhead verances (Enter the variances as positive numbers Label the variances en favorable (F) or ur Manufacturing overhead) Requirement 2. Calculate the food manufacturing overhead vanences (Enter the variances a positive numbers Label the variances as favorable (F) or un Manufacturing overhead) Begin by comoving the food manufacturing overheed buspet vrience Fint determine the formula for the budget varwice ten computer me tuaget variance Faed MOH dance Now compute the manufacturing overhead volume vanane si define the formula for the volume vorace the compute the volume variance IN MOH Volumen Requirement 3. Have the company's managers done a good job or a poor ob controlling materials, Inbor and overhead costs? Why ar why not? Overall, the managers have done a obot controlling materials, labor, and overhead costs. This is evidenced by the fact that they have Requirement 4. Describe how the company's managers can beneft from the standard costing system. If a box is not used in the table, leave the box emoty, do not select a label) The following are benefits of a standard costing system Do you think the company should continue with the standard cost system? The company Remy ore og brandwo Options A