Chapter 11 Homework Question 5, E11-31A (similar to) HW Score: 13.33%, 1.33 of 10 points Save Part 1 of 6 Points: 0 of 2 CenterWare 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 (P) 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 X -X Actual Results Standard Price and Volume CenterWare allocated fixed manufacturing overhead to production based on standard direct labor 15 pounds per pot at a cost of $6 00 per hours. Last month, the company reported the following actual results for the production of 1,900 Direct materials (resin) . pound flower pots Direct labor. . . . . . 2.0 hours at a cost of $20.00 per hour Purchased 30,060 pounds at a cost of $6 50 per pound, Standard variable manufacturing overhead rate . . . . . $5 00 per direct labor hour Direct materials. used 29,260 pounds to produce 1,900 pots Worked 2.5 hours per flower pot (4,750 total DLH) at a Budgeted fixed manufacturing overhead . . . . $29,400 Direct labor . cost of $19.00 per hour Standard fixed MOH rate . ..... . . . . . . . . . . . . . . . . .. . $8.00 per direct labor hour (DLH) Actual variable manufacturing $5.70 per direct labor hour for total actual variable overhead . manufacturing overhead of $27,075 Actual fixed manufacturing overhead $28,800 Standard fixed manufacturing overhead allocated based on actual Print Done production. ..... . $30,400 PM