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.