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? . . . . . Requirement 1. Compute the variable manufacturing overhead variances. What do each of these variances tell management? (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 (F) or unfavorable (U).) Begin by computing the variable manufacturing overhead rate variance. First determine the formula for the rate variance, then compute the rate variance for variable manufacturing overhead. Variable overhead rate variance Now compute the variable manufacturing overhead efficiency variance. First determine the formula for the efficiency variance, then compute the efficiency variance for variable manufacturing overhead. Variable overhead efficiency variance What do each of these variances tell management? The variable manufacturing overhead (MOH) rate variance tells managers that were V than expected. The 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.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? . . . . The variable manufacturing overhead (MOH) rate variance tells managers that were than expected. The 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 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 ower pots for urban settings. The company has these standards: a (Click the icon to view the standards.) E (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? Standard price and volume _ Actual results Chic Design allocated xed 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 1.100 Direct materials (resin) .......................... pound ower pots: Direct labor .................................... 2.0 hours at a cost of $23.00 per hour Purchased 17,740 pounds at a cost of $6.20 per pound; Standard variable manufacturing overhead rate ..... $8.00 per direct labor hour Direct materials used 16'940 pounds to produce 1'100 pOtS Worked 2.5 hours per flower pot (2,750 total DLH) at a Budgeted fixed manufacturing overhead ---------- $8900 Direct labor ...................... cost of $19.00 per hour Standard xed MOH rate ...................... $5.00 per direct labor hour (DLH) Actual variable manufacturing $8.20 per direct labor hour for total actual variable overhead. ........................ manufacturing overhead of $22,550 Actual fixed manufacturing overhead $7,400 Standard fixed manufacturing overhead allocated based on actual 8 production ....................... $11,000