Chic Design is a manufacturer of large flower pots for urban settings. The company has these standards: E: (Click the icon to view the standards.) P. (Click the icon to view the actual results.) Read the requirements Direct materials (resin) 13 pounds per pot at a cost of $5.00 per pound Requirement 1. Compute the direct labor rate variance and the direct labor efficiency variance. (Enter the variances as positive numbers. El to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DL = Direct labor) Direct labor 3.0 hours at a cost of $11.00 per hour Standard variable manufacturing Begin with the direct labor rate variance. First determine the formula for the rate variance, then compute the rate variance for direct labor. overhead rate $8.00 per direct labor hour X DL rate variance Budgeted fixed manufacturing overhead $28,000 x = Standard fixed MOH rate $10.00 per direct labor hour (DLH) Now compute the direct labor efficiency variance. First determine the formula for the efficiency variance, then compute the efficiency variand Actual Results x = DL efficiency variance x Requirement 2. What is the total variance for direct labor? (Enter the amount as a positive number. Label the variance as favorable (F) or un Chic Design 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 1,000 flower pots: The total variance for direct laboris Direct materials Purchased 14,200 pounds at a cost of Requirement 3. Who is generally responsible for each variance? The department is responsible for the labor rate variance. The departmen Requirement 4. Interpret the variances The labor rate variance means that Elegance's employees earned per hour than budgeted. $5.10 per pound; Used 13,500 pounds to produce 1,000 pots Direct labor Worked 3.4 hours per flower pot (3,400 total DLH) at a cost of $10.00 per hour Actual variable manufacturing overhead ..... $8.30 per direct labor hour for total actual variable manufacturing overhead of $28,220 Actual fixed manufacturing overhead $27,300 Standard fixed manufacturing overhead allocated based on actual production ....... $30,000 Choose from any list or enter any number in the input fields and then continue to the next question. Chic Design 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. 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. x DL rate variance x Now compute the direct labor efficiency variance. First determine the formula for the efficiency variance, then compute the efficiency variance for direct labor. DL efficiency variance Requirement 2. What is the total variance for direct labor? (Enter the amount as a positive number. Label the variance as favorable (F) or unfavorable (U).) The total variance for direct laboris Requirement 3. Who is generally responsible for each variance? The V department is responsible for the labor rate variance. The department is responsible for the labor efficiency variance. Requirement 4. Interpret the variances. The labor rate variance means that Elegance's employees earned V per hour than budgeted. The labor efficiency variance means that it actually took direct labor hours than it should have to produce 1,000 pots. Choose from any list or enter any number in the input fields and then continue to the next