P11-55B Comprehensive standards and variances problem (Learning Objectives 1, 2,3, 5, & 6) Nautical Awning manufactures awnings and uses a standard cost system. Nautical allocates overhead based on the number of direct labor hours. The following are the company's cost and standards data Direct material 18.0 yards per awning at $10.00 per yard Direct labor 2.0 hours per awning at $13.00 per hour Variable MOH standard rate $5.00 per direct labor hour Predetermined fixed MOH standard rate $10.00 per direct labor hour Total budgeted fixed MOH cost $34,000 Actual cost and operating data from the most recent month follows: Purchased 35,460 yards at a total cost of $333,324 Used 31,300 yards in producing 1,800 awnings Actual direct labor cost of $45,457 for a total of 3,470 hours Actual variable MOH cost $19,085 Actual fixed MOH cost $39,500 All manufacturing overhead is allocated on the basis of direct labor hours