Ceramics Etc. 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. Requirement 1. Compute the direct labor rate variance and the direct labor efficiency variance. (Enter the variances as positive numbers. Enter the currency amounts in the formulas to the nearest cent, then round the final variance 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. * - ) = DL rate variance X - = Standard Price and Volume 15 pounds per pot at a cost of $6.00 per Direct materials (resin). pound Direct labor..... ..2.0 hours at a cost of $23.00 per hour Standard variable manufacturing overhead rate ..... $5.00 per direct labor hour Budgeted fixed manufacturing overhead $22,800 Standard fixed MOH rate.. $7.00 per direct labor hour (DLH) i Actual Results X Ceramics Etc. 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 Direct labor.... Actual variable manufacturing overhead.. Purchased 27,290 pounds at a cost of $6.20 per pound; .. used 26,690 pounds to produce 1,700 pots Worked 2.5 hours per flower pot (4,250 total DLH) at a cost of $19.00 per hour $5.20 per direct labor hour for total actual variable ... manufacturing overhead of $22,100 Actual fixed manufacturing overhead .. $22,400 Standard fixed manufacturing overhead allocated based on actual production... $23,800 i Requirements 1. Compute the direct labor rate variance and the direct labor efficiency variance. 2. What is the total variance for direct labor? 3. Who is generally responsible for each variance? 4. Interpret the variances