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 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 $6.00 per . pound .5.0 hours at a cost of $18.00 per hour $7.00 per direct labor hour $59,000 $10.00 per direct labor hour (DLH) 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 1,200 flower pots: Purchased 16,340 pounds at a cost of $6.10 per pound; Direct materials ... used 15,840 pounds to produce 1,200 pots Worked 5.5 hours per flower pot (6,600 total DLH) at a Direct labor cost of $17.00 per hour Actual variable manufacturing $7.20 per direct labor hour for total actual variable overhead .. manufacturing overhead of $47,520 Actual fixed manufacturing overhead $58,300 Standard fixed manufacturing overhead allocated based on actual production $60,000 - x 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