CenterWare is a manufacturer of large flower pots for urban settings. The company has these standards:

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Read the requirements.

variance as favorable $($F$)$ or unfavorable $($U$).$ 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.

Standard Price and Volume

Requirements

Compute the direct labor rate variance and the direct labor efficiency variance.

What is the total variance for direct labor?

Who is generally responsible for each variance?

Interpret the variances.

Actual Results