Ceramics Etc. is a manufacturer of large flowerpots for urban settings. The company has these standards:

View the standards. ${?}^6$

Paper size

Letter

View the actual results. ${?}^{?}$

Read the requirements. ${?}^8$

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$)$ in the input field after the amount you enter.$)$

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.

$(1)]$

$(2)$

$7.$ Variable overhead

$7$

$=$

rate variance

$1=$

Now compute the variable manufacturing overhead efficiency variance. First determine the formula for the efficiency variance, then compute the efficiency variance for variable manufacturing overhead.

$7$: Actual Results

Direct materials

$..............................$ Purchased $21,140$ pounds at a cost of $$5\mathrm{.}20$ per

Direct labor $.....................................$ Worked $3\mathrm{.}3$ hours per flowerpot total DLH$)$ at a cost of $$19\mathrm{.}00$ per hour

Actual variable manufacturing overhead $q,$ $$3\mathrm{.}70$ per direct labor hour for total actual variable manufacturing overhead of $$21,978$

Actual fixed manufacturing overhead $..........$ $$66,500$

Standard fixed manufacturing overhead allocated based on actual production

$..$ $$70,200$