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.) Requirements 1. Compute the variable manufacturing overhead variances. What do each of these variances tell management? 2. Compute the fixed manufacturing overhead variances. What do each of these variances tell management? Requirement 1. Compute the variable manufacturing overhead variances. What do each of these variances tell management? (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).) Begin by computing the variable manufacturing overhead rate variance. First determine the formula for the rate variance, then compute the rate variance for variable manufacturing overhead. ( ( Variable overhead ) = rate variance = Standard Price and Volume Direct materials (resin) Direct labor Standard variable manufacturing overhead rate Budgeted fixed manufacturing overhead Standard fixed MOH rate 13 pounds per pot at a cost of $4.00 per pound 3.0 hours at a cost of $18.00 per hour $3.00 per direct labor hour $23,500 $5.00 per direct labor hour (DLH) Print Done Actual Results 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 Actual fixed manufacturing overhead Standard fixed manufacturing overhead allocated based on actual production Purchased 23,280 pounds at a cost of $4.40 per pound; used 22,780 pounds to produce 1,700 pots Worked 3.5 hours per flower pot (5,950 total DLH) at a cost of $16.00 per hour $3.20 per direct labor hour for total actual variable . manufacturing overhead of $19,040 $22,800 $25,500 Print Done