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- Standards Direct materials (resin) Direct labor. Standard variable manufacturing overhead rate Budgeted fixed manufacturing overhead Standard fixed MOH rate... 11 pounds per pot at a cost of $5.00 per pound 2.0 hours at a cost of $24.00 per hour .... $3.00 per direct labor hour $7,000 $5.00 per direct labor hour (DLH) . ... Actual results GrandScapes 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 1,000 flower pots: Purchased 12,400 pounds at a cost of $5.40 per pound; Direct materials. ..used 11,600 pounds to produce 1.000 pots Worked 2.5 hours per flower pot (2,500 total DLH) at a Direct labor. cost of $20.00 per hour Actual variable manufacturing $3.40 per direct labor hour for total actual variable overhead manufacturing overhead of $8,500 Actual fixed manufacturing overhead $6,500 Standard fixed manufacturing overhead allocated based on actual production $10,000 ...... Requirements 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. GrandScapes is a manufacturer of large flower pots for urban settings. The company has these standards: Click the icon to view the standards.) Click the icon to view the actual results.) Read the fearfumans Requirement 1. Compute the direct material price variance and the direct material quantity variance (Enter the variances as positive numbers. Enter currency amounts in the formula to the nearest cent and then round the final variance amount to the nearest whole dollar Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DM - Direct materials) First determine the formula for the price variance, then compute the price variance for direct materials = DM price variance 3