CenterWare is a manufacturer of large flower pots for urban settings. The company has these standards: E (Click the icon to view the standards.) (Click the icon to view the actual results.) 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. 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 turer of large flower pots for urban settings. The company has these standards: the standards.) (Click the icon to view the actual results.) terial price variance and the direct material quantity variance. onsil 0 Standards te the to the = Dil bers rabli Direct materials (resin) mula fo 12 pounds per pot at a cost of $4.00 per pound 5.0 hours at a cost of $18.00 per hour Direct labor Standard variable manufacturing overhead rate Budgeted fixed manufacturing overhead Standard fixed MOH rate............. $4.00 per direct labor hour $98,000 .$12.00 per direct labor hour (DLH) Print Done 7 Question He th fi Actual Results bers. Enter currency rable (F) or unfavorat .the 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 1,700 flower pots: Direct materials ..... Purchased 21,510 pounds at a cost of $4.50 per pound; used 20,910 pounds to produce 1,700 pots Direct labor Worked 5.3 hours per flower pot (9,010 total DLH) at a cost of $17.00 per hour Actual variable manufacturing overhead $4.70 per direct labor hour for total hctual variable manufacturing overhead of $42,347 Actual fixed manufacturing overhead ... $97,600 Standard fixed manufacturing overhead allocated based on actual production $102,000