$6$ PARTS Ceramics Etc. is a manufacturer of large flowerpots for urban settings. The company has these$$ standards:

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Ceramics Etc. 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 $600$flowerpots:

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Part $1$

Requirement $1.$ Compute the direct labor rate variance and the direct labor efficiency variance. $($Enter the variances as positive numbers. Enter the currency amounts in the formulas to the nearest$$ cent, then round the final variance amounts to the nearest whole dollar. Label the variance as favorable$($F$)$ or unfavorable$($U$)$ in the input field after the amount you enter. Abbreviations$$ used: DL$=$ Direct$$ labor.$)$

Begin with the direct labor rate variance. First determine the formula for the rate$$ variance, then compute the rate variance for direct labor. Direct materials $($resin$)............................$

$8$ pounds per pot at a cost of $$3\mathrm{.}00$ per pound

Direct labor. $.....................................$

$2\mathrm{.}0$ hours per pot at a cost of $$22\mathrm{.}00$ per hour

Standard variable manufacturing overhead rate. $......$

$$5\mathrm{.}00$ per direct labor hour

Budgeted fixed manufacturing overhead. $............$

$$19,400$

Standard fixed MOH rate. $..........................$

$$7\mathrm{.}00$ per direct labor hour $($DLH$)$

Direct materials. $.............................$

Purchased $14,260$ pounds at a cost of $$3\mathrm{.}10$ per pound; used $13,760$ pounds to produce $1,600$ pots

Direct labor. $.................................$

Worked $2\mathrm{.}5$ hours per flowerpot $(4,000$ total DLH$)$ at a cost of $$19\mathrm{.}00$ per hour

Actual variable manufacturing overhead. $........$

$$5\mathrm{.}60$ per direct labor hour for total actual variable manufacturing overhead of $$22,400$

Actual fixed manufacturing overhead. $...........$

$$19,200$

Standard fixed manufacturing overhead allocated based on actual production. $...................$

$$22,400$

$1.$

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.Ceramics Etc. is a manufacturer of large flowerpots for urban settings. The company has these standards:

View the standards.

Ceramics Etc. 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 $1,600$

flowerpots:

View the actual results.

Read the requirements.