Refer to the City Scapes data set. Calculate and interpret overhead variances.

Requirements
1. Compute the variable manufacturing overhead variances. What do each of these ­variances tell management?
2. Compute the fixed manufacturing overhead variances. What do each of these ­variances tell management?
City Scapes data set.
City Scapes is a manufacturer of large flower pots for urban settings. The company has these standards:
Direct materials (resin)....................................... 15 pounds per pot at a cost of $ 5.00 per pound
Direct labor.............................................................. 2.0 hours at a cost of $ 13.00 per hour
Standard variable manufacturing overhead rate.................................... $ 6.00 per direct labor hour
Budgeted fixed manufacturing overhead................ $ 23,600
Standard fixed MOH rate......................................... $ 7.00 per direct labor hour (DLH)

City Scapes allocates fixed manufacturing overhead to production based on standard direct labor hours. Last month, City Scapes reported the following actual results for the production of 1,900 flower pots:

Direct materials............................................. Purchased 30,230 pounds at a cost of $ 5.20 per pound; used 29,830 pounds to ­produce 1,900 pots
Direct labor................................................... Worked 2.4 hours per unit (4,560 total DLH) at a
cost of $ 12.00 per hour
Actual variable manufacturing overhead...... $ 6.20 per direct labor hour for total actual variable
manufacturing overhead of $ 28,272
Actual fixed manufacturing overhead........... $ 23,400
Standard fixed manufacturing overhead allocated based on actual production.......... $ 26,600