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

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)

choices:

Standards D.ire.ct materials (resin).... ... 12 pounds per pot at a cost of $5.00 per pound 4.0 hours at a cost of $20.00 per hour Direct labor. ................ Standard variable manufacturing overhead rate. ... $6.00 per direct labor hour Budgeted fixed.manufacturing.overhead......... $96,800 Standard fixed MOH. rate. ...... $12.00 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 2,100 flower pots: Direct materials .... . Purchased 26,740 pounds at a cost of $5.30 per pound; used 26,040 pounds to produce 2,100 pots . Worked 4.5 hours per flower pot (9,450 total DLH) at a cost of $19.00 per hour Direct labor. ..... Actual.variable manufacturing overhead ..... $6.30 per direct labor hour for total actual variable manufacturing overhead of $59,535 Actual fixed. manufacturing.overhead......... $96,200 Standard fixed manufacturing overhead allocated based on actual production........$100,800 First determine the formula for the price variance, then compute the price variance for direct materials. X DM price variance = = Jx(l Determine the formula for the quantity variance, then compute the quantity variance for direct material. ) = DM quantity variance X ( Requirement 2. Who is generally responsible for each variance? The v department is responsible for the materials price variance. The department is responsible for the materials quantity variance. Requirement 3. Interpret the variances. The materials price variance means that the actual price Grand Ceramics' personnel paid for resin the standard budgeted price for resin. The materials quantity variance means that Grand Ceramics' employees used resin than they should have to produce 2,100 pots. First determine the formula for the price variance, then compute the price variance for direct materials. x(l = 1) = DM price variance N x ntity variance, then compute the quantity variance for direct material. Actual hours De Actual price Actual quantity purchased Actual quantity used Standard hours allowed Standard price Standard quantity allowed = DM quantity variance ]) =D RE responsible for each variance? Th sponsible for the materials price variance. The department is responsible for the materials Requirement 2. Who is generally responsible for each variance? The department is responsible for the materials price variance. The department is responsible for the materials quantity variance. Reqi the variances. marketing The als price variance means that the actual price Grand Ceramics' personnel paid for resin the standard budgeted price for resin. production The purchasing als quantity variance means that Grand Ceramics' employees used resin than they should have to produce 2,100 pots. sales