CenterWare 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 requirements. amounts to the nearest whole dollar. Label the 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.

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$$ DL rate variance

$-1)=$

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Actual Results

Standard Price and Volume

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 $1,800$ flower pots:

Direct materials. $q,$ Purchased $23,300$ pounds at a cost of $$3\mathrm{.}20$ per pound;

Direct materials $($resin$)q,12$ pounds per pot at a cost of $$3\mathrm{.}00$ per pound

Direct labor. $q,3\mathrm{.}0$ hours per pot at a cost of $$18\mathrm{.}00$ per hour

Standard variable manufacturing overhead rate $q,$ $$8\mathrm{.}00$ per direct labor hour

Budgeted fixed manufacturing overhead $q,$ $$50,000$

Standard fixed MOH rate. $q,.$ $$10\mathrm{.}00$ per direct labor hour $($DLH$)$

Direct labor $q,$ used $22,500$ pounds to produce $1,800$ pots

Actual variable manufacturing $-$ Worked $3\mathrm{.}4$ hours per flower pot $(6,120$ total DLH$)$ at a overhead. $q,$ cost of $$16\mathrm{.}00$ per hour

Actual fixed manufacturing overhead $$8\mathrm{.}40$ per direct labor hour for total actual variable

Standard fixed manufacturing manufacturing overhead of $$51,408$

overhead allocated based on actual

production. $.$

$$49,800$

$$54,000$