1. Compute the direct material price variance and the direct material quantity variance.

2. Who is generally responsible for each?variance?

3. Interpret the variances.

Standards Direct materials (resin). . . . . . . . . . . . . . . . . . . . . . . 15 pounds per pot at a cost of $3.00 per pound Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.0 hours at a cost of $19.00 per hour Standard variable manufacturing overhead rate. . . . . . . . . . . . . . . . . . . . . . . . . Budgeted fixed manufacturing overhead. . . . . . . . . Standard fixed MOH rate. . . . . . . . . . . . . . . . . . . . . $7.00 per direct labor hour $20,000 $12.00 per direct labor hour (DLH) Actual Centerware 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 1 comma 0001,000 flower pots: Direct materials. . . . . . . . . . . . . . . . . . . . . . . . . Purchased 16,000 pounds at a cost of $3.50 per pound; used 15,600 pounds to produce 1,000 pots Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . Worked 2.5 hours per flower pot (2,500 total DLH) at a cost of $17.00 per hour Actual variable manufacturing overhead. .... $7.70 per direct labor hour for total actual variable manufacturing overhead of $19,250 Actual fixed manufacturing overhead. . . . . . . $19,600 Standard fixed manufacturing overhead allocated based on actual production. . . . ... $24,000 1. Compute the direct material price variance and the direct material quantity variance. 2. Who is generally responsible for each variance? 3. Interpret the variances