CenterWare is a manufacturer of large flower pots for urban settings. The company has these standards EEB (Click the icon to view the actual results.) (Click the icon to view the standards) Requirements 1. Compute the direct materials price variance and the direct materials quantity variance. 2. What is the total variance for direct materials? 3. Who is generally responsible for each variance? 4. Interpret the variances Requirement 1. Compute the direct materials price variance and the direct materials 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 x ( x ( DM price variance Determine the formula for the quantity variance, then compute the quantity variance for direct materials x ( x ( )DM quantity variance Requirement 2. What is the total variance for direct materials? Requirement 3. Who is generally responsible for each variance? department is responsible for the materials quantity variance The Requirement 4. Interpret the variances The for resin. The | department is responsble for the materials price variance. The Y materials price variance means that the actual price Groovy Bottles' personnel paid for resin the standard budgeted price materials quantity variance means that Groovy Botties employeeo usedresin than they should have to produce 1,200 pots 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 1,200 flower pots: Purchased 13,000 pounds at a cost of $5.50 per pound Used 12,600 pounds to produce 1.200 pots Worked 2.3 hours per flower pot (2,760 total DLH) at a cost of $20.00 per hour Direct materials Direct labor Actual variable manufacturing overhead$660 per direct labor hour for total actual variable manufacturing overhead of $18,.216 $7.300 Actual fixed manufacturing overhead Standard fixed manufacturing overhead allocated based on actual production $12,000 is the 6 Data Table gene partment erpret the v materials pr is Direct materials (resin). 10 pounds per pot at a cost of $5.00 per pound 2.0 hours at a cost of $21.00 per hour Direct labor Standard variable manufacturing d b overhead rate Budgeted foxed manufacturing overhead Standard fixed MOH rate $6.00 per direct labor hour $8,000 $5.00 per direct labor hour (DLH) materials q PrintDone y list or enter
