Ceramics Eto. 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 the actual results Requirements 1. Compute the direct material price variance and the direct material quantity 0 Actual Results 2. Who is generally responsible for each variance? 3. Interpret the variances Ceramics Etc allocated fixed manufacturing overhead to production based on standard direct Requirement 1. Compute the direct material price variance and the direct labor hours. Last month, the company reported the following actual results for the production of nearest bent and then round the final variance amount to the nearest whole 2.100 flower pots. First determine the formula for the price variance, then compute the price va Direct materials Purchased 26.320 pounds at a cost of $3.30 per pound; used 25,620 pounds to produce 2,100 pots Direct labor... Worked 5.4 hours per flower pot (11.340 Determine the formuls for the quantity variance, then compute the quantity total DLH) at a cost of $20.00 per hour Actual variable manufacturing overhead.. $5.40 per direct labor hour for total actual variable manufacturing overhead Requirement 2. Who is generally responsible for each variance? of $81,236 Actual fixed manufacturing overhead..... $81,300 The department is responsible for the materials price variance Standard fixed manufacturing overhead Requirement 3. Interpret the variances. allocated based on actual production ....... 384.000 PH The materials price variance means that the actual price Grar Print Done The materials quantity variance means that Grand Ceramics' 0 Standards Direct materials (resin) 12 pounds per pot at a cost of $3.00 per pound 5.0 hours at a cost of $21.00 per hour Direct labor. ----- Standard variable manufacturing overhead rabe Budgeted fred manufacturing overhead ........ Standard fixed MOH rate....... $5.00 per direct labor hour $82,000 $8.00 per direct labor hour (DLH) Print Done Ceramics Eto, is a manufacturer of large flower pots for urban settings. The company has these standards: BEE Click the icon to view the standards.) (Click the icon to view the actual results.) Requirements 1. Compute the direct material price variance and the direct material quantity variance 2. Who is generally responsible for each variance? 3. Interpret the variances 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 th 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) First determine the formule for the price variance, then compute the price variance for direct materials. XL ) = DM price variance Determine the formula for the quantity variance, then compute the quantity variance for direct material. - DM quantity variance Requirement 2. Who is generally responsible for each variance? The department is responsible for the materials price variance. The V 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 M 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