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.) Requirements 1. Compute the variable manufacturing overhead variances. What do each of these variances tell management? 2. Compute the fixed manufacturing overhead variances. What do each of these variances tell management? . . . . . What do each of these variances tell management? The variable manufacturing overhead (MOH) rate variance tells managers that were V than expected. The V variable MOH efficiency variance tells managers that actual were than Requirement 2. Compute the fixed manufacturing overhead variances. What do each of these variances tell management? (Abbreviations used: MOH = manufacturing overhead. Enter the variances as positive numbers. Label the variances as favorable (F) or unfavorable (U).) Begin by computing the fixed manufacturing overhead budget variance. First determine the formula for the budget variance, then compute the budget variance for fixed manufacturing overhead. Fixed MOH Actual fixed overhead = budget variance Now compute the fixed manufacturing overhead volume variance. First determine the formula for the volume variance, then compute the volume variance for fixed manufacturing overhead. Fixed MOH volume variance What do each of these variances tell management? The fixed overhead budget variance tells managers that The fixed overhead volume variance tells managers thatChic 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.) Requirements 1. Compute the variable manufacturing overhead variances. What do each of these variances tell management? 2. Compute the fixed manufacturing overhead variances. What do each of these variances tell management? . . . . . What do each of these variances tell management? The variable manufacturing overhead (MOH) rate variance tells managers that were V than expected. The V variable MOH efficiency variance tells managers that actual were than Requirement 2. Compute the fixed manufacturing overhead variances. What do each of these variances tell management? (Abbreviations used: MOH = manufacturing overhead. Enter the variances as positive numbers. Label the variances as favorable (F) or unfavorable (U).) Begin by computing the fixed manufacturing overhead budget variance. First determine the formula for the budget variance, then compute the budget variance for fixed manufacturing overhead. Fixed MOH Actual fixed overhead = budget variance Now compute the fixed manufacturing overhead volume variance. First determine the formula for the volume variance, then compute the volume variance for fixed manufacturing overhead. Fixed MOH volume variance What do each of these variances tell management? The fixed overhead budget variance tells managers that The fixed overhead volume variance tells managers thatChic 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.) Requirements 1. Compute the variable manufacturing overhead variances. What do each of these variances tell management? 2. Compute the fixed manufacturing overhead variances. What do each of these variances tell managemen X Actual results Standard price and volume 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, 100 15 pounds per pot at a cost of $6.00 per flower pots: Direct materials (resin) . . pound Purchased 17,740 pounds at a cost of $6.20 per pound; Direct labor. . . . . . . . . . . . . 2.0 hours at a cost of $23.00 per hour Direct materials used 16,940 pounds to produce 1, 100 pots Standard variable manufacturing overhead rate . . . . . $8.00 per direct labor hour Worked 2.5 hours per flower pot (2,750 total DLH) at a Budgeted fixed manufacturing overhead . . . . . . . . . . $8,000 Direct labor . . . . . . . . . . . . . . . . . . . . . . . . cost of $19.00 per hour Actual variable manufacturing $8.20 per direct labor hour for total actual variable Standard fixed MOH rate . . . . . . . . . . . . . . . . . . . . . . $5.00 per direct labor hour (DLH) overhead . . . . . . manufacturing overhead of $22,550 Actual fixed manufacturing overhead $7,400 Standard fixed manufacturing overhead allocated based on actual Print Done production . . . . . . .. . . . . . . . . $11,000