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Pratt Awning manufactures awnings and uses a standard cost system. The company allocates overhead based on the number of direct labor hours. The following are the company's cost and standards data: 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.) All manufacturing overhead is allocated on the basis of direct labor hours. Read the requirements Actual Results Requirement 1. Calculate the standard cost of one awning Standard cost Standard cost per unit Direct materials Direct labor Variable MOH Fixed MOH Purchased 47.700 yards at a total cost of $500,850 Used 44.100 yards in producing 1.800 awnings Actual direct labor cost of $52,592 for a total of 3.460 hours Actual variable MOH S7266 Actual fixed MOH S26,100 Total standard cost Standard Price and Volume - X Print Done Requirements Standards: Direct materials 25.0 yards per awning at $11.00 per yard Direct labor 2.0 hours per awning at $15.00 per hour Variable MOH standard rate $200 per direct labor hour Predetermined fixed MOH standard rate $6.00 per direct labor hour Total budgeted foved MOH cost $20.600 1. Calculate the standard cost of one awning 2 Calculate the following variances: a. The direct material variances b. The direct labor variances c. The variable manufacturing overhead variances d. The fred manufacturing overhead variances 3. Explain what each of the variances you calculated means and give at least one possible explanation for each of those variances. Are any of the variances likely to be interrelated? Print Done Print Done
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