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 100 teapots): (Click the icon to view the standards.) Actual cost and operating data from the most recent month are as follows: (Click the icon to view the actual results.) Al manufacturing overhead is allocated on the basis of direct labor hours. Read the requirements. Requirement 1. Calculate the standard cost of one batch. Standards: Direct material 60 pounds per batch at $5.00 per pound Direct labor 5.0 hours per batch at $11.00 per hour Variable MOH standard rate $7.00 per direct labor hour Predetermined fixed MOH standard rate $3.00 per direct labor hour Total budgeted fixed MOH cost $1,300 Purchased 4,260 pounds at a cost of $4.70 per pound Used 3,800 pounds in producing 60 batches Actual direct labor cost of $3,717 at an average direct labor cost per hour of $11.80 Actual variable MOH$2,331 Actual fixed MOH$1,700 Requirements 1. Calculate the standard cost of one batch. 2. Calculate the following variances: a. The direct material variances. b. The direct labor variances. c. The variable manufacturing overhead variances. d. The fixed manufacturing overhead variances. 3. Have the company's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why or why not? 4. Describe how the company's managers can benefit from the standard costing system. Do you think the company should continue with the standard cost system