Atkinson Manufacturing produces ceramic teapots. Atkinson 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 teapots Click the icon to view the standards.) Actual cost and operating data from the most recent month are as follows: EEE (Click the icon to view the actual results.) All manufacturing overhead is allocated on the basis of direct labor hours. Read the reguirements. Requirement 1. Calculate the standard cost of one batch. Standard cost per batch Standard cost 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 variances 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 DM quantity variance