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 fequirements. 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. Actual quantity purchased *( Actual price Standard price ) = DM price variance 26000 x - X i 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. Print Done i Actual Results 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 2,000 flower pots: Purchased 26,000 pounds at a cost of $3.30 per pound; Direct materials. used 25,200 pounds to produce 2,000 pots Worked 4.5 hours per flower pot (9,000 total DLH) at a Direct labor. cost of $13.00 per hour Actual variable manufacturing $4.40 per direct labor hour for total actual variable overhead ... .. manufacturing overhead of $39,600 Actual fixed manufacturing overhead $ 101,800 Standard fixed manufacturing overhead allocated based on actual production .. $104,000 Print Done