1. Compute the direct labor rate variance and the direct labor efficiency variance. 2. What is the total variance for direct labor? 3. Who is generally responsible for each variance? 4. Interpret the variances. Direct materials (resin).... ........... 13 pounds per pot at a cost of $3.00 per pound Direct labor ....4.0 hours at a cost of $12.00 per hour . . . . . . . . . . . . . . . . . . . . . . . . . . .UTIOUIS ala CUSLUL IZ Standard variable manufacturing overhead rate ............ . $3.00 per direct labor hour Budgeted fixed manufacturing overhead ......... $38,000 Standard fixed MOH rate ... . $5.00 per direct labor hour (DLH) V I T AL . . . . . . . . . . . . . . . . . . Chic Design allocated fixed manufacturing overhead to production based on standard direct labor hours. Last month, the company reported the following actual results for the production of 2,000 flower pots: 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Direct materials ............... . Purchased 27,900 pounds at a cost of $3.40 per pound; Used 27,400 pounds to produce 2,000 pots Direct labor Worked 4.5 hours per flower pot (9,000 total DLH) at a cost of $11.00 per hour Actual variable manufacturing overhead .... $3.50 per direct labor hour for total actual variable manufacturing overhead of $31,500 Actual fixed manufacturing overhead ....... $37,500 Standard fixed manufacturing overhead allocated based on actual production ... $40.000